Why Crypto Market Rising Today?
After a rough and difficult patch of downturns and dips , the cryptocurrency market is finally witnessing a bullish momentum on the back of relaxed global macroeconomic headwinds and cooling inflation. The global crypto market capitalization has crossed more than a $1 trillion market, supported by high and stable trading volumes.
The cryptocurrency market has recorded some positive signs due to ease in macroeconomic activities which has led the crypto price to rally. The key coins of the crypto market – Bitcoin and Ethereum – showed incredible stability and both have managed to trade in a positive range ever since a month. Experts are anticipating this rally to continue even in the coming weeks due to slight indication of ease in macroeconomic conditions worldwide and especially in the key markets of the U.S. and the UK.
Let’s have a look at the top reasons which have turned the crypto market bullish and what should be the approach of investors in this unexpected crypto rally
Crypto Bull Run Factors
The rise in cryptocurrency prices is caused by several factors, including:
Increased Adoption: As more individuals and businesses start using crypto, the demand for these digital assets increases. This increased demand leads to higher prices. For example, as the use of Bitcoin becomes more widespread, its price is likely to go up.
Institutional Investment: The entry of institutional investors into the crypto market has also been a major driver of price increases. Institutions such as banks, hedge funds, and investment firms have invested billions of dollars into cryptocurrencies, which has added liquidity to the market and pushed up prices.
Favorable Regulation: Government support and favorable regulations have also been a catalyst for higher cryptocurrency prices. The pending introduction of MiCAr regulations across Europe and the promise of more clarity from US regulators helps investors become more confident in the market. This increased confidence leads to increased adoption and higher prices.
Store of Value: Cryptocurrencies, particularly Bitcoin, have been touted as a potential store of value due to their finite supply. As more people view cryptocurrencies as valuable investments, demand increases, leading to higher prices.
Economic and Political Factors: Economic and political factors such as inflation, currency devaluation, and uncertainty can also play a role in driving up cryptocurrency prices. In times of economic instability, individuals may seek out alternative investments, such as cryptocurrencies, as a hedge against traditional markets. This is one of the factors that has been affecting the live price of BTC on crypto exchanges like Gate.io lately.
It's worth noting that the cryptocurrency market is highly volatile and prices can fluctuate rapidly. However, trading on a top crypto exchange such as Gate.io gives you options around how to hedge against negative price changes. For example, you can opt to dedicate the crypto you hold to a liquidity pool and earn monthly income on it, to offset any detrimental price drops.
Will crypto market rebound in 2023? Here’s what experts say
Bitcoin and Ethereum are down 75% from their all-time highs in November 2021; some experts believe that cryptos will bounce back in the coming months.
After a prolonged bear market in 2020, analysts and investors are optimistic that the crypto markets will rally in 2023. This positive outlook has been bolstered by the fact that the industry has managed to weather the storm and show signs of recovery even in difficult times.
The Crypto Market in 2023 and Its Bulls
The rise of cryptocurrency prices is the result of a combination of increased adoption, institutional investment, favorable regulation, its potential as a store of value, and economic and political factors. As the industry continues to develop, it's likely that these factors will continue to play a role in shaping the future of cryptocurrency prices.
For the most part the recent increases in the crypto market valuation is attributed to a shift in investors’ attitudes and a global economy bouncing back from covid 19 disruption. The interest in crypto markets is growing again and is set to catch up to developments within the industry, as it never really stops to grow, be it utility or real-world use cases that turn the financial world into a better place.
Bitcoin Price Predictions by Experts
The Bitcoin cryptocurrency is undoubtedly one of the most popular assets to invest in these days. Because the crypto market has a relatively low barrier to entry, even people who have never been interested in trading before can easily become crypto investors. As a result, there are a lot of Bitcoin price projections out there that aim to answer one simple question: Will it rise again in the future? Most experts are generally bullish on Bitcoin’s price. Some, like Digital Coin Price, think we will see the Bitcoin price equal almost $120K in the next
five years.
Bitcoin Prediction Table
