[ad_1]
AFP via Getty Images
important point
- After a rough 2022, 2023 sees the price of most cryptocurrency coins rise as the market attempts to recover from the Luna collapse and FTX implosion.
- Lawyers for failed cryptocurrency exchange FTX say they have recovered more than $5 billion in cryptocurrency and cash assets that can be used to repay creditors.
- A fall in inflation from 7.1% in November to 6.5% in December has fueled optimism that the Fed will slow down by tightening monetary policy and more investors will return to riskier assets such as digital currencies. born. Declining inflation pushed Bitcoin briefly above $19,000.
After a turbulent year in the cryptocurrency space, prices for some of the larger coins finally seem to show signs of recovery in 2023. Experts estimate that about $1.4 trillion will be erased from the crypto space in 2022. There were concerns that the implosion of FTX could lead to a long crypto winter.
Interestingly, the cryptocurrency price rose after FTX lawyers announced they had found nearly $5 billion in liquid assets that could be used to repay customers. Inflation data released on Thursday then showed signs of receding, leading many to believe the Fed will slow the pace of rate hikes.
Dive deeper into why cryptocurrency prices have risen and how Q.ai can help.
Why Is Crypto Rising?
While cryptocurrency prices will not skyrocket like they did during the pandemic, there are signs of a resurgence with a glimmer of hope. We have some good crypto news to deal with.
FTX Discovers $5 Billion
FTX Group advisors have uncovered over $5 billion in crypto and cash assets that can be used to repay customers and investors. Advisors also found a large amount of other crypto assets that are less liquid and more difficult to sell due to their impact on the market.
Exchange advisors sort out confusing financial records and figure out how to proceed. An attorney for FTX also informed the bankruptcy court that he identified nine million customer accounts from the wreckage. The recovered funds helped revitalize the crypto market as many believed the assets were completely gone.
General macroeconomic factors
Cryptocurrencies have a lot to do with inflation data, as economic factors play a big role. The latest CPI data he released on Jan. 12, and the news was pretty positive as inflation fell from his 7.1% in November to 6.5% in December. Overall CPI fell 0.1% in December alone. The news is optimistic given expectations that the Fed will back off from aggressive rate hikes.
There is also speculation that investors may return to speculative assets now that the Fed is likely to slow down as it hikes rates. Bitcoin has returned to the $19,000 level for the first time since November 8, 2022 after the FTX implosion.
Binance Plans to Hire This Year
We have seen many crypto exchanges and lenders disappear completely in 2022, and we are still feeling the aftermath. However, in a surprising conspiracy, Binance seems to be gearing up for the next bull market, expanding its workforce by 15-30% of his in 2023. The news was very welcome as the space was filled with news of unemployment and pain.
Which coin is soaring?
With the entire crypto market reacting positively to the recent news, we decided to highlight a few coins that will bounce back in 2023. All prices are as of 01/13/2023 morning. (Keep in mind that cryptocurrency prices fluctuate a lot.)
ethereum
I wrote about the Ethereum merger a few months ago and kept track of the price. The coin has fallen significantly from its all-time high of $4,865.57, but is up about 12% year-to-date to about $1,412.
Bitcoin
Many experts wondered if Bitcoin’s price would return to $19,000 after the FTX implosion brought down the entire crypto market. At the time of writing this article, Bitcoin is hovering in that price range. While Bitcoin is clearly not an inflation hedge, the price is expected to continue rising based on positive economic data.
Cardano
Cardano has recently recovered and the coin is up around 33% over the year. Cardano founder Charles Hoskinson has indicated that his contracts are almost ready for upcoming updates to his blockchain. The “Voltaire Upgrade” will bring millions of users together in the Cardano ecosystem.
As always, we encourage you to track cryptocurrency prices yourself to gauge fluctuations. plummeting from the dollar.
What coins are not doing well?
With most coins plummeting in price, it’s probably easier to look at the struggling cryptocurrency coins than to list the ones that are thriving.
Solana
Solana saw its value decline as the coin is strongly tied to FTX, and that relationship led to a sharp price drop in November. is about $16, which cannot be ignored. This is well below the all-time high of $259.99 set in November 2021.
binance coin
Binance Coin (BNB) has recently suffered as investors lost confidence due to various allegations against Binance, a cryptocurrency exchange that uses BNB as its native token. Forbes recently wrote about the coin losing his 29% of its value in two months, and on Binance he estimates he has 29 million tokens left.
It is worth repeating that it does not end until the end. While the value of these coins has fallen, a rebound is undeniable as cryptocurrency prices are slowly recovering from the Black Swan event.
What’s Next for Crypto Investors?
Have you ever considered investing in cryptocurrencies? Are you a crypto investor? As we enter 2023, there are several considerations for those involved in the cryptocurrency market.
Inflation data and response to rate hikes remain important
Cryptocurrency was thought to be an inflation hedge, but it turned out to be another speculative asset that fluctuates according to macroeconomic conditions. CPI data is released monthly and all markets (including cryptocurrencies) react to this news.
While this month’s inflation data was seen as positive, we cannot ignore the fact that we are far from the ideal target of 2% inflation. The next drop will be the Fed’s reaction as his next FOMC meeting is scheduled for his January 24th and 25th.
Coinbase Continues Layoffs
You can’t write about investing in cryptocurrencies without discussing Coinbase and their aggressive layoffs. The company has announced it will cut another 20% of its workforce by laying off 950 employees in another round of cuts. This is the second major layoff for the exchange.
Confidence in crypto is declining
After the Luna debacle and the FTX debacle, it’s hard to be optimistic about cryptocurrencies. Trading volumes are down as consumers become more cautious about investing in the crypto space following how much money was wiped out last year.
We will continue to monitor the aftermath of the FTX debacle as lawyers attempt to collect funds to pay back creditors.
The most important issue right now is the concept of the bottom of cryptocurrencies. We’ve seen the bottom prices of major forms of cryptocurrency. Some analysts feel we’ve hit bottom, but others don’t immediately confirm this idea. The truth is that this space is filled with volatility and speculation. That’s it. Price movements for highly speculative assets can be wild.
How should I invest?
As you can see from the price fluctuations of these digital assets, investing in cryptocurrencies involves volatility and uncertainty. The cryptocurrency market is never closed and new information is constantly coming out, so prices are always fluctuating.
If you are considering investing in cryptocurrencies, we encourage you to consider our Emerging Tech Kit, which helps spread your risk across the industry rather than investing in a single coin or company. increase. If you’re looking for something more stable, less speculative, and even less susceptible to the current volatility of the market, check out the Large Cap Kit.
Q.ai takes the guesswork out of investing. Our artificial intelligence scours the market for the best investments for all types of risk tolerance and economic conditions. Regardless of the industry you invest in, you can always activate Portfolio Protection to protect your profits and reduce your losses.
Conclusion
While some crypto tokens have risen in recent days, we cannot ignore the significant drop from the all-time highs seen during the 2021 crypto boom. If you plan to allocate your savings to digital assets, you can afford to lose.
Download Q.ai now Access to AI-powered investment strategies.
[ad_2]
Source link
