Bitcoin and Broader Crypto Market Rally on Improving Macros and Positive Global Cues

Over the last weekend, Bitcoin and the broader cryptocurrency market registered a strong rally adding over $100 billion to investors wealth. This helped the broader cryptocurrency market to reach close to $1 trillion once again.

The world’s largest cryptocurrency Bitcoin (BTC) surged past $21,000 levels registering its 12th consecutive day of gains for the year 2023. With this, Bitcoin has extended its weekly gains to more than 20%.

The latest rally in Bitcoin and the crypto space comes as U.S. inflation cools down and optimism around the slowing down of the Fed rate hikes build up. As a result, all three major indices on Wall Street have been rallying for the past three days.

Going ahead into the year, analysts are have mixed opinion and believe that it will take a year more for the optimism and the bull run to resume in 2024. Last year in 2022, the entire cryptocurrency market lost a total of $1.4 trillion in market cap.

Furthermore, the global macros aren’t quite supportive at this point and this could continue to have selling pressure on the crypto space, believe the analysts. Thus, many analysts think that it is unlikely that Bitcoin will test its all-time high of $69,000 this year as well.

The analysts also note that there’s not much downside left as we are already close to the bottom. However, Bitcoin can still see the levels of $12,000 in case of an major sell-off coming this year ahead.

Anthony Scaramucci of SkyBridge Capital believes that 2023 could be a “recovery year” for Bitcoin and the BTC price could be trading anywhere between $50,000-$100,000 in two-three years from now.

“You are taking on risk but you’re also believing in [bitcoin] adoption. So if we get the adoption right, and I believe we will, this could easily be a fifty to one hundred thousand dollar asset over the next two to three years,” he said.

Along with Bitcoin, the altcoin space also bounced back pretty strongly. The world’s second-largest crypto Ethereum (ETH) rallied past $1,500 levels with its market cap at $189 billion. With this, ETH extended its weekly gains to more than 16%.

Along with ETH, Polygon’s MATIC has also witnessed a strong rally this week. The MATIC price has clocked more than 15% weekly gains surging past $1.00. However, one altcoin that stands to gain the most is Solana (SOL) which is up 42% on the weekly chart.

After facing a massive crash last year, the SOL price is already up by more than 100% in the first 15 days of 2023. As of press time, SOL is trading at a price of $23.