Bitcoin Surge Hits New Heights for early 2023
In the early days of 2023, Bitcoin drives the crypto market and Bonk, a new meme coin, is making waves with its surge.
BTC, the top cryptocurrency, has gained 26% so far this month, including 22% in the past week, rising back above $20,000 and setting it up for its best month since October 2021, shortly before the Big Crypto Crash.
Ether has risen 29% this year, helping push the global cryptocurrency market past $1 trillion, according to CoinGecko. "After a tough year last year for cryptos, we are seeing a type of mean reversion," said Bespoke Investment Group analyst Jake Gordon, referring to asset values returning to long-term norms.
Bitcoin surge drags crypto market up with it Dogecoin and Shiba Inu have risen by 19% and 27% in 2023. But buyers beware.
Wave Financial co-founder Les Borsai advised investors to be wary of altcoins like DOGE, Shiba Inu, and Bonk. However, speculators are speculating on these tokens.
Since FTX, the crypto exchange, filed for bankruptcy in November, the Solana blockchain has lost funds and users. However, Bonk, a dog-inspired Solana meme coin, is gaining popularity. The Solana token has risen 131% in the first few weeks of 2023, the largest gainer among significant cryptos.
Tom Dunleavy, senior research analyst at data firm Messari, said talk of Solana's death have been "highly overblown". The ecology is strong despite speculation driving price appreciation.
Crypto reversal too early
Crypto gains were attributed to anticipation that inflation had peaked, decreasing the need for tighter central bank policy. "Bitcoin and crypto tend to front-run everything," said Wave Financial's Borsai.
According to Blockchain.com, Bitcoin trading volumes on major exchanges reached $151 million in a week, the largest in nearly two months. Chainalysis data showed a Bitcoin surge with total BTC flows, including trading and payments, rising by 13,130 BTC in the last seven days, the greatest increase in 64 days.
Market watchers cautioned against premature celebration due to low trading volumes and macroeconomic uncertainty.
"Despite the recent surge we've observed, it's too early to proclaim a definitive reversal for the crypto market," said Prometheum co-founder Aaron Kaplan. He added that if interest rate increases are below market expectations, there will be a benefit to risk assets. This could, he said, see crypto prices continue to trend upward.
Kaplan, however, warned: "There's too much uncertainty right now."
Author: Hassan Alzaza
My Name is Hassan Al-Zaza, I am a detail-driven and experienced SEO Content Writer living in Germany with over ten years of experience developing and producing top-notch content. I have a Bachelor's degree in English Language and Literature and a Master's in Business Communication. I have been working for 12 years in marketing, Content Writing, and ad Copywriting across SMEs, corporate, and public sector organizations in the EU and the Middle East region. I helped build brands for a wide range of successful companies from IT and software consultancies to the finance industry, tourism, and retail.