After a recent drop, Bitcoin rebounded from a low of $42,050 to stabilize around $42,680. Alexander Kuptsikevich from FxPro Financial Services Limited provides insights into the current dynamics of the crypto market, where Bitcoin continues to trade slightly below its 50-day moving average despite the total market value reaching $1.69 trillion.
Over the past 30 days, the value of all cryptocurrencies increased by 5.6%, outpacing Bitcoin’s growth and sparking discussions about the potential start of an altcoin season. However, Kuptsikevich emphasizes that Bitcoin is expected to remain the main driving force in the market, with expectations revolving around the Bitcoin halving event and capital inflows facilitated by Exchange-Traded Funds (ETFs).
CoinShares reported a significant increase in crypto fund investments, with the past week seeing an inflow of $1.185 billion, marking the 15th positive entry week out of the last 16. Bitcoin led with an increase of $1.142 billion, followed by Ethereum, XRP, and Cardano, although the inflow remained below the record set during the launch of a Bitcoin futures-based ETF in October 2021.
Anthony Scaramucci of SkyBridge Capital expects the Bitcoin surplus to clear within the next six to eight trading days, adding to market expectations. Binance predicts a positive year for cryptocurrencies in 2023, forecasting a 109% increase in total market value. Meanwhile, GameStop’s closure of its NFT platform due to regulatory uncertainties highlights the challenges faced by traditional institutions entering the blockchain space.
CoinGecko reveals that out of 24,000 cryptocurrency projects listed since 2014, 14,039 have ceased to exist, with most starting during the 2020-2021 market rally, underscoring the volatile nature of the crypto environment. While experts like Kuptsikevich provide valuable guidance, it’s still considered early to declare the onset of an altcoin season, highlighting the importance of staying informed on market trends and regulatory dynamics for making educated decisions in the ever-changing crypto landscape.