Bitcoin (BTC) has been on the rise since the start of the new year. It appears that the cryptocurrency hit bottom just before the end of 2022, and now its starting to reclaim its ground.
The recent rally has brought Bitcoin back to the $18,000 levels and has pushed Bitcoin’s market capitalization in excess of $349 billion.
Many believe that the logic behind the rebound of BTC is related to macro economic factors, specifically the receding levels of inflation. Furthermore, the positive news that post the FTX melt down regulators have be able to recover $5 billion in cash and cryptocurrencies have also had a positive effect in re-stabilizing the crypto sentiment.
Institutional investors have been on an uptick increasing their stakes in Bitcoin and other cryptocurrencies of late. Cryptocurrencies are not going away, and these large institutional investors are looking at the recent dips of the currency as a means of bolstering up their holdings in crypto assets at a market discount.
With the FTX collapse, the argument for government regulations is increasing. Government involvement in regulating these currencies will have certain benefits, but at the same time will impact the bullish stance of this asset class.
2023 will be an interesting year for cryptocurrencies. Let us see how this will unfolds.
