Bitcoin, the world’s largest crypto to date, managed to climb to the 2023 high at $23,100, coinciding with the recovery in the traditional markets, as the tech-heavy Nasdaq Composite Index, which gained 2.9% on Jan. 20.
Furthermore, investors are expecting the United States Federal Reserve to reduce the pace and length of interest rate hikes, which will act as a boost to the digital economy. However, the uplifting news was struck by Google announcing the layoff of 12,000 workers, which triggered buying activity on risk assets.
Meanwhile, Dubravko Lakos-Bujas, chief U.S. equity strategist at JPMorgan, noted that the market expects weaker earnings guidance, which could "put downward pressure" on the stock market. Furthermore, Federal Reserve Governor Christopher Waller unveiled that a soft recession should be used as a tool for bringing inflation down.
What is causing Bitcoin to skyrocket?
Digital Currency Group’s Chapter 11 bankruptcy filing may turn out to be the leading cause of Bitcoin’s gains as the troubled Genesis Capital now has the chance of reorganizing the debts and its business activities. However, the move is maybe the prime reason behind the hold in the fire sale scenario on Grayscale Investments assets, including the $13.3 billion trust fund Grayscale GBTC.
Meanwhile, Bitcoin derivatives data suggest that a bull run may be around the corner, as margin calls and options are trading neutral, as call (buy) and put (sell) options may turn positive when fear is prevalent because the protective put options premium is higher than risk call options.
Ethereum consolidates. What next?
ETH has surpassed $1,620 in relation to the US dollar. Ethereum is maintaining its rise and might make one more ascent toward $1,720. Ethereum's price started to steadily increase above the $1,500 barrier mark, acquiring enough momentum to break through the $1,600 resistance area.
The price per ETH even reached levels above $1,650 and the 100 hourly simple moving average thanks to the bullish actions. The price just reached a fresh yearly high above $1,679 and is currently retracing gains.