Crypto in 2023 has been a collapsing industry and yet these past few weeks have seen some hope.
After the FTX fallout in 2022, the trust on such currencies has been crushed and the market turned totally in the downside range with no signs of cooling down. However, 2023 gave a fresh opening to major digital currencies including Bitcoin and Ethereum and the crypto market has gradually started turning green due to the relaxed macroeconomic situation and cooling inflation.
This morning Bitcoin Hit a Six-Week High as Financial Titans Step Up Crypto Initiatives. Among smaller coins, Ethereum, the second largest virtual currency, rose nearly 5% to $1,813.79 with a market capitalisation of $218.3 billion. Cardano and Solana also traded over 7% and 4% higher, respectively.
The entry of traditional institutions in the crypto market fuelled optimism among digital asset investors after the gloom caused by a US Securities and Exchange Commission’s crypto crackdown.
Earlier, the US regulator had filed lawsuits against exchange operators Binance Holdings Ltd. and Coinbase Global Inc. and designated a raft of digital tokens as unregistered securities.
Despite this small spike, crypto experts believe that the current situation is difficult and the road to recovery is very long. As most of the currencies still lag very much behind their all-time highs. Bitcoin remains far below its pandemic-era, liquidity-fueled 2021 peak of almost $69,000, the Bloomberg report said. Similarly Ethereum which is now trading at the levels of $1,700, touched the all-time high levels of $4,000, way back in 2021.
The cryptocurrency market has seen worse, be it Terra-Luna crash or after-effects of Russia-Ukraine war, tightened tax regulations and then FTX collapse, the crypto market has literally gone through the roughest storms during the past few years. 2023 gave the burnt crypto market a fresh start and showed positive signs and upside recovery.
It is to be noted that crypto prices are highly volatile and extremely speculative, so it is advisable to invest only a minuscule amount which you can afford to lose.