In the first two weeks of February 2023, Bitcoin and Ethereum witnessed a notable rally in value, increasing by almost 5 per cent over the past week. The rally comes after a prolonged recession, inspiring hope in the two crypto giants’ recovery.
Bitcoin has finally risen above its $24,000 ceiling after slowly climbing up over January. While it is still far from the peaks of late 2021 and early 2022, it significantly improved from the $16,967 low it hit in December 2022 during the worst of the crypto winter.
$BTC is back below the $24k mark today, currently down 3.67% and sitting at $23,996. https://t.co/59QGNDUsh8 pic.twitter.com/Iu8y8xTZa7
— Yahoo Finance Plus (@yfinanceplus) February 17, 2023
Ethereum has also begun to rise after plateauing in value throughout January, increasing to around $1,700 in trade value. The currency sat at $1,500 in early 2023 after falling sharply to $1,100 in June 2022.
This increase comes in light of a tumultuous period for the US dollar, which may be a significant factor in cryptocurrency’s current surge. Interest in decentralised finance and non-fungible tokens (NFT) also play a part in the recovery process.
Crypto rally driven by inflation, NFTs, DeFi
Analysts suggest that cryptocurrency has the United States’ current economic circumstance to thank for the rally. The Consumer Price Index, a measurement of inflation, had risen by 0.5 per cent in January, its highest jump since last October.
While these inflation factors first hurt cryptocurrency in its winter, they have also reduced the value of the US dollar. The dollar traded at lower prices in the European trade, leading to some investors fleeing to cryptocurrency as a safer bet.
The rise of decentralized finance (DeFi) and non-fungible tokens (NFTs) has also given a boost to the crypto market. Many investors are excited about the potential of these new technologies and the opportunities they present.
— Samu.bnb (@samurainfts) February 17, 2023
NFTs and decentralised finances have also gained popularity among investors, introducing new opportunities for investment in the financial field.
Bitcoin itself saw the development of a new NFT tied to its units called Ordinals. NFTs’ integration into Bitcoin’s blockchain has inspired optimism for future innovations to come.