Is the bitcoin party over? Cipher puts on the brakes after experiencing one of the best streaks in its history

These two weeks of continuous progress, His best streak since 2013 – when he tied 15 days of lead –which led to bitcoin exceeding $21,000, a level it has not reached since last November 7.

But the rises weren’t limited to bitcoin. The world’s 100 largest cryptocurrencies are up 20% this yearaccording to data from bloombergthus restoring part of the sharp declines suffered by digital assets in 2022. In fact, The combined capitalization of this market has once again exceeded a trillion dollars, It is a number that I lost after the bankruptcy of the FTX platform last November.

inflation

Like the stock markets, cryptocurrencies have benefited moderate inflationAnd up to 6.5% in the United States As for 9.2% in the Eurozone in December. Price controls have raised expectations Central banks can’t just slow the rise in interest rates As for Even downgraded in the second part of the year.

Inflation is the main driver of BitcoinJosh Gilbert, an analyst at eToro, confirms. For this reason, “a fresh decline in the US Consumer Price Index (CPI) could be the catalyst for another bullish tranche.”

“The continued decline in inflation brings the Federal Reserve closer to starting to cut interest rates in late 2023, setting the stage for Investors take more risk in their investment portfoliosGilbert explains, too. Cryptocurrencies are one of the most risky assets.

Analysts point to acquisitions by large buyers, those known as whalesas one of the other factors that pushed the prices of cryptocurrencies, and Bitcoin in particular, in the early days of 2023.

to whales to me half

According to figures released by crypto data firm Kaiko, the average amount of bitcoin traded on the Binance platform has increased from $700 to $1,100 in recent days.

And although there is still a little over a year left, the half – which will be held in March 2024-, may also cause an increase in appetite for bitcoin. This event, which takes place every four years, is based on Bitcoin production cut in half. In previous operations, the bitcoin bull cycle started 15-18 months before it happened.

[Los gurús de las ‘criptos’ alertan de una cascada de quiebras en el sector tras la caída de FTX]

But every bullish streak at some point has an end. Bitcoin halted the advance last Wednesday, hurting the lows recorded at the same time Major Wall Street Indexes.

To the red color of New York parquet has been added the information that the crypto lender Genesis Global Capital may file for bankruptcy this week.

sanity

Some analysts, managers or investment banks have already warned that gathering of cryptocurrency was waking up Much euphoria among investors.

Cryptocurrency markets are on the rise even as traditional stocks are seeing some recovery. A mixture of news, including slowing inflation in the US, led to markets rebounding, however The cryptocurrency revival has been much stronger than other asset classesSimon Peters, Analyst at eToro.

[Adiós, 2022: las bolsas ‘bailaron’ al son de los bancos centrales en el año del desplome de las ‘cripto’]

“It’s still very early days, so caution is definitely needed for investors. In times like the present, Markets tend to fall any day we get bad newswarns Peters.

For Diego Morin, an analyst at IG, “Bitcoin could test the psychological level of $20,000. “On the high end, if demand continues to enter the market,” he adds, “he points to $22,900 and $25,000.”

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