Cryptocurrencies are making substantial gains as investors capitalize on the recent stock market surge and increasing risk appetite. Bitcoin reaches its highest level in two weeks, extending gains from earlier this week, which saw it reach $41,938 per coin on Saturday morning (January 24).
Bitcoin, the world’s most valuable digital currency, has reached $41,938. It is 16% higher than Thursday’s low and 27% higher than the current year’s low of $32,950. Ether, the second-largest digital currency, has reached $3000 for the first time since January 21.
Since mid-June, Bitcoin experienced its greatest single-day gain as expectations of faster-than-expected Fed rate hikes fueled inflation, while the cryptocurrency was also roiled by technological innovation. However, Friday’s 11% increase was sufficient to consider it a haven against this trend and garner some favorable news at least until Monday, when everything will most certainly fall back down again.
Despite a long week of results volatility, US markets finished the week strong. The tech-heavy NASDAQ gained ground as a consequence of Amazon’s strong growth. However, Facebook owner Meta Platforms’ poor results that evening provided them greater confidence in their business strategies going forward.
Bitcoin has smoothly entered the mainstream. As a result, investors try to get in on the action when risk appetite is low. Tyr Capital’s Chief Investment Officer, Ed Hindi, stated:
“The current panic and volatility surrounding bitcoin are based on a fundamental misunderstanding of it as an asset class. When valuations on the Nasdaq fall, misguided institutional investors start liquidating bitcoin positions en masse as if it were a tech stock.”
The recent gain in the stock market has boosted the value of other listed crypto assets. As a result, certain currencies hit fresh highs.
Though Bitcoin prices fell significantly in the last week of January and were at 47 percent of its all-time high, the cryptocurrency recovered marginally after hitting a low of $33K on January 24, 2022, and is now worth over $42k.
Should you buy, sell, or hold? Analysts are divided on whether or not to invest in cryptocurrencies. However, more than half of those polled say now is a good time to buy, with only 45 percent opposing.
Experts from prominent fintech firms anticipate that by the end of 2022, bitcoin will have reached an all-time high of $93,717, which is more than $24,000 higher than its current all-time high price.
Now is an excellent time to invest in cryptocurrencies. Experts anticipate that bitcoin will trade for $192k by the end of 2025, up more than 300 percent from its November 2021 peak, and reach over half a million dollars by 2030. While they may appear to be big targets at first glance, they are much lower than what experts anticipated back in July 2021, when their most recent projection predicted bitcoin prices might reach 265k or 706K, respectively.