After suffering losses for most of last year, bitcoin and other cryptocurrencies are bouncing back in 2023, sparking speculation that the so-called crypto winter — the world’s digital asset equivalent of a bear market — is over.
Bitcoin, the world’s most popular cryptocurrency, is up 25% from last month, hovering above $20,000 for the first time since November, when the implosion of Sam Bankman-Fried’s FTX trading platform shocked the industry.
Ethereum, the second cryptocurrency, is up more than 30% in the past month, trading above $1,500 on Monday.
“Wall Street is very confident that the end of the Fed tightening cycle is coming and this is providing some underlying support for crypto,” wrote Ed Moya, senior market analyst at Oanda, on Friday.
“Unless we hear some strong resistance from the Fed or if commodity prices rise, crypto traders shouldn’t be surprised if Bitcoin is able to extend its recent gains.”
Bitcoin peaked over a year ago, in November 2021, just short of $69,000. Two months ago, as FTX contagion gripped the digital asset market, bitcoin dropped to a two-year low of $15,480.
While US stock and bond markets are closed on Monday in observance of Martin Luther King, Jr. Day, cryptocurrencies are traded 24/7.
Source: CNN Brasil
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