ZINGER KEY POINTS
- Major cryptocurrencies see gains, market capitalization surpasses $1 trillion.
- Bitcoin has crossed $20,000, having experienced 11 consecutive days of upward movement.
The largest cryptocurrency by market capitalization, Bitcoin has spiked above the psychologically important barrier of the $21,000 mark. Saturday’s move brought cheer to the subdued markets, which have been rattled by the collapse of several high-profile companies, including cryptocurrency exchange FTX.
The rally in prices of major cryptocurrencies like Polygon and Solana and memecoins like Dogecoin and Shiba Inu, is fuelled by optimism that digital currencies may have bottomed.
This is the first time since Nov. 8, 2022, that Bitcoin has crossed $20,000, having experienced 11 consecutive days of upward movement.
Other notable cryptocurrencies such as Ethereum and Cardano also saw substantial gains, pushing the total market capitalization of the cryptocurrency market over the $1 trillion mark for the first time since November.
The current spike in Bitcoin’s value comes after the Labor Department issued data showing that top-line inflation rose by 6.5% in December, down from 7.1% in November.
On Thursday, Federal Reserve policymakers expressed relief that the inflation rate continued to decrease in December.
Bear Market Not Over
Anndy Lian, Chief Digital Advisor, of Mongolian Productivity Organization tells Benzinga says investors should take a cautionary stance and not become too bullish on the digital currency.
“This does not mean that the bear market is over. Firstly, the lack of Bitcoin trading volume around the region of $18,000 and RSI shows that bitcoin is over-bought, showing that the rally could be short-lived. Secondly, the massive layoffs by the crypto companies and the SEC’s new charges on Genesis and Gemini for the Unregistered Offer and Sale of Crypto Asset Securities looks like it would take a longer time to see a real sustainable bull run,” he says.
He added that Bitcoin and other cryptocurrencies tend to respond more quickly to macroeconomic changes and shifts than stocks do and that we may be currently witnessing such a shift.
“I do see more investors putting more capital over the week. Overall, this is still a positive sign for the market,” he adds.
Mainstream Adoption Will Lead To More Stability
According to Scott Tripp, a member of redecentralise.com, a not-for-profit organization, the increasing mainstream acceptance and institutional adoption of Bitcoin will lead to more stability in its price over time, the current rally is driven by speculative mania and may not be sustainable in the long run.
Bitcoin May Shoot Up Further Over 2024
Raj A Kapoor, the founder of India Blockchain Alliance, predicts that 2024 could be the year when Bitcoin experiences a significant price increase due to the halving event.
According to Kapoor, this event could be responsible for the current positive sentiment and upward trend in Bitcoin’s value.
“I also feel that large investors or Bitcoin Whales have resumed their Bitcoin holdings. The large Bitcoin whales are keeping between 1,000 and 10,000 BTC in their wallets, according to data from Santimen clearly indicating that investors have been stocking up on Bitcoin, which may be a hint of a recovery in the price of Bitcoin,” Kapoor adds.
Photo: courtesy of Shutterstock.
Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.
Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.
An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.