Cryptocurrencies rise; Bitcoin hikes above $17,000
By Álvaro Estevez / Alejandra Zamora
Date: Monday 09 Jan 2023
(Sharecast News) - The cryptocurrency market has risen notably. Bitcoin (BTC) has increased 1.5% in the last 24 hours and breaks the $17,000 barrier, while Ethereum (ETH), the largest altcoin on the market, has rebounded nearly 4% and exceeds $1,300.
The reigning cryptocurrency is at a three-week high, after a period in which it seemed stuck between $16,000 and $17,000. Experts blame this upward movement on Bitcoin, which managed to break through this psychological level on Sunday, an ISM services reading that has suggested the sector is slowing, as well as a possible slowdown in Federal Reserve (Fed) monetary policy in the coming weeks.
"It shows that the Fed's tightening policies may be starting to have the intended impact," noted Juan Fernandez-Figares, director of analysis at Link Securities. Meanwhile, David Duong, analyst at Coinbase Institutional, commented that a bullish push to consolidate the $17,100 level could put Bitcoin on course for $17,800.
"There are a large number of buyers with enough risk appetite to lift the trading range to $16,200-$17,200. This draws a strong buy wall at current prices and suggests a strong bottom is forming," added Sean Farrell, of FundStrat.
Also, on Thursday, the US inflation figure for December will be released. Analysts expect a further slowdown in both headline inflation (from 7.1% to 6.5%) and core inflation (from 6.0% to 5.7%) and forecast significant movements, both up and down, if there are any surprises.
"If the readings show that the trend of slowing inflation is firming, the current rally that bonds and stocks have started the year with may consolidate. On the other hand, any sign that inflation is reluctant to moderate could provoke a small correction in stock markets that are starting to become somewhat overbought," stated Fernández-Figares.
At the same time, the market will closely follow the evolution of the future of the conglomerate Digital Currency Group, parent company of Genesis, as it tries to resolve its open conflict with Gemini, the Winklevoss twins' exchange. The recovery of Solana (SOL), one of the tokens most affected after the bankruptcy of FTX due to its link to Sam Bankman-Fried, is also noteworthy; in the last seven days, the cryptocurrency has rebounded 47.7% and stands at $16, prices not seen since November 11, the day FTX filed for bankruptcy. Bearish concerns also persist about Tron's TRX token TRX and Huobi's HT, both linked to entrepreneur Justin Sun.
In other market news, Binance coin (BNB) has risen 6.2% and Ripple (XRP) has increased 2.5%. Cardano (ADA) soars over 17% in the last 24 hours and Dogecoin (DOGE), Polkadot (DOT) and Polygon (MATIC) have risen over 4% each.
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