The Recent Bitcoin Rally – Commentary
A commentary from Alex Adelman, CEO & Co-founder of Lolli on the recent Bitcoin rally, why we’re seeing the crypto markets surge, and how we can expect to see this trend play out in 2023.
The Recent Bitcoin Rally
The recent crypto rally represents the dissipation of investor anxieties caused by the FTX collapse and a shift towards renewed investor confidence and interest in bitcoin.
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We are likely to see bitcoin continue to trade higher in the first part of 2023, particularly as the FTX debacle has highlighted the fundamental differences between bitcoin and cryptocurrencies that are not secure stores of value.
The adoption of bitcoin by leading firms like Blackrock that we saw in 2022 showed us that mainstream interest in bitcoin is here to stay. As bitcoin’s increased price holds, we will see new levels of adoption among retail and institutional investors this year.
Bitcoin's recent rally came on the heels of last week’s inflation data showing that the consumer price index had decreased by 0.1% in December. This new downward trend for inflation suggests that the Fed may ease off of increased interest rates and loosen monetary policy in the coming months, which will continue to boost investor confidence and interest in bitcoin.
Bitcoin will remain strong moving into February as investors look to bitcoin as the most established, secure store of value that aligns with the values and technology of a digital age.
Source valuewalk
