The price of Bitcoin rose by almost 20% over the weekend to reestablish itself around €20,000 – practically the price of the crypto before the fall of the FTX exchange. The exact causes of this surprise rise remain to be determined. But we note that the macroeconomic context is showing more positive signals than in recent weeks.
These include the slowdown in inflation, particularly in the United States – revealed by the latest report Consumer Product Index of the US Department of Labor. Between November and December 2022, the price level rose by an average of 0.5% per month – which is slightly more than the 0.4% expected by experts but still well below inflation over the previous two months. the period.
Is the rise of Bitcoin observed since this weekend really sustainable?
The precise outlook for 2023 remains unknown. But it could be that some investors already consider at this stage that this is a sufficient signal of improvement to consider again diversifying their bets with also riskier investments such as crypto.
However, analysts generally prefer to remain very cautious at this stage. An analyst taken by Fortune, for example, says that the price of Bitcoin is unlikely to cross the threshold of 21,500 dollars in the short term. According to him, the price is above all the result of recent behavior by investors, but they are not likely to maintain this virtuous circle.
An analyst quoted by The Block suspects that this rise will be mainly driven by investors trying to exploit short-term liquidity gaps as many major players have exited the crypto market. If this is confirmed, again, it is probably a sign that this increase will not be maintained over time.
The analyst notes, however, that the market is on the whole historically very low and therefore that in the event of a proven recovery, prices could rise well beyond these levels. We note in passing that other cryptos have seen their prices drawn into the same positive trend over the period – but to a much lesser extent.
For example, the price of Ether rose by just over 12% during the period. Similarly, Binance Coin gained around 6% over the period. Dogecoin has risen by 10% over the past 10 days. Certainly positive signals but which should invite those who could invest in crypto to remain extremely cautious.
