From the beginning of 2023, the prices of cryptocurrencies They showed big spikes. On January 1, 2023, el bitcoin had a value of US$ 16,500 and last Tuesday closed at around US$ 26,000what represents a 50% increase. The rise also occurred in other cryptos, for example, ethereum increased 42% and solana rebounded 100% in your quote.
“What he observed, and taking as a reference to bitcoin, the cryptocurrency develops alternately upward and downward cyclessince it cost less than a cent, when it began trading in 2010 up to US$ 69,000 in November 2021,” he said. Carlos Maslatónfinancial lawyer in dialogue with PROFILE.
“From that November to October 2022 we live a deflationary trend in the price of bitcoin from US$69,000 to US$15,600. In recent days there was an important trend and the cryptocurrency reached almost US$ 26,800 dollarsto later fall to US$ 24,300”, added the self-described bitcoiner.
Cryptocurrencies are attractive once more amid financial turmoil
“This, I consider, is that previous gains are being correctedthat is, we are not in a bearmarket de bitcoin, but is continuing with the historic bullmarket” and added Maslatón: “Unlike other situations in which bitcoin accompanied a general market decline, this time the opposite signals were given. Its the first time in the entire history of BTC What are we watching that functions as a refuge of value. He is giving different signals. Expressly in contradiction with the banking sector”.
Time to invest?
So, with the fall of two traditional banking financial entities in the United States, the value of bitcoin skyrocketed and reached US$ 26,000to then quote this Thursday near the US$ 25.0000.
After showing himself as a refuge asset in a sort of flight to quallity that investors ran over the past weekend, the CEO and investment firm Capriole, Charles Edwardswent ahead and considered that the BTC pIt might be quoted above US$100,000.
“Overall, the cryptocurrency market has experienced significant volatility in recent years.Although there has been a growing interest and adoption of cryptocurrencies in some countries, there are still many risks associated with investing in cryptocurrencies, such as lack of regulation and lack of stability,” warned Jacobus maximiliananalyst of Bitget in statements to this medium.
He added: “In 2023, we may see a bull market for cryptocurrencies if growing interest and adoption continues. Furthermore, if technological solutions are developed that make cryptocurrencies safer and easier to use for the general publicthis might contribute to further market growth.”
However, a bear market scenario is also possible if there is a decline in investor confidence due to market volatility or negative news regarding the use of cryptocurrencies. “Furthermore, if governments around the world impose stricter restrictions or regulations on cryptocurrencies, this might limit the growth of the market”, added Maximiliano.
In short, it is difficult to accurately predict What will the cryptocurrency market be like in 2023?. It will depend on a variety of factors, including public adoption, technological development, and government regulation.
The Federal Reserve’s decision and the impact on the market
The decision made by the United States Federal Reserve next week may have an impact on the cryptocurrency market, although it is difficult to predict the exact outcome and extent of this impact. The Fed has various tools at your disposal to influence the economy, including monetary policy, interest rate, and financial regulation.
Carlos Maslatón assured that the fall of US banks “was a political move”
“One way the Fed decision might affect the cryptocurrency market is through monetary policy. If the Fed decides to increase the money supply in the economy by buying bonds or lowering the interest rate, this might weaken the value of the dollar and increase demand for alternative assetslike cryptocurrencies. On the other hand, if the Fed chooses to reduce the money supply to combat inflationthis might have the opposite effect and weaken the value of cryptocurrencies”, explained Maximiliano.
Another possible scenario that the Fed decision might affect the crypto market is through financial regulation. If the Fed decides to impose stricter regulations on cryptocurrencies, this might increase investor uncertainty and concernwhich might lead to a decrease in demand for cryptocurrencies and a drop in their value.
“In summary, the decision that the Fed makes next week might have an impact on the cryptocurrency markets, but the scope and direction of this impact are difficult to predict with certainty,” the analyst concluded.
So, it is always time to invest, however, the cryptocurrency market It is very volatile and you have to have analysts’ warnings into account, since the decisions of the monetary regulators of each country will have a full impact on said investment.
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