Cryptocurrency market started 2023 better than expected. The market has seen a great recovery since the beginning of the year. As a result of this recovery, the total value of the market exceeded 1 trillion dollars again. With the Bitcoin price approaching $21,000, altcoin prices also gained momentum. So what are the possible reasons behind this rise? Here is the current outlook for the market.
Why Are Cryptocurrencies Rising?
The primary reason for this rally in the cryptocurrency market seems to be the US CPI data released on January 12. According to the data, the CPI fell to 5.72% in December 2022, the lowest level in a year. While this decrease indicates that inflation has decreased, investors who left their money in US Dollars, stocks and stocks. bitcoin started to move to risky assets such as crypto, especially crypto. As a result, the Federal Reserve could help it reconsider rate hikes. However, it should be underlined that this is not a definite result, the expectations are that interest rates will still increase.
FTX Recovered Some of Its Assets!
In addition, collapsed in November FTX The news that the stock market recently saved $5 billion worth of crypto assets also found a positive response in the market. The jurisdiction also asked FTX to return the funds to its customers by March 15, 2023. However, the firm’s CFO, Mary Cilia, stated that the funds could be returned by April.
Moreover, Ethereum community is preparing to announce the next hard fork, Shanghai Hard Fork. This is an important step that will unlock the ETH tokens that have been staked for months.
Meanwhile, even though Bitcoin has managed to hit $20,000, the leading crypto asset is still 71% lower than its all-time high of $69,000.