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2023 Bull run begins – Why is the crypto market up today?

In this post:

  • Bitcoin consolidates at $23k as crypto market indicators point to a bull run
  • The total crypto market cap surges above $1 trillion
  • Altcoins begin an upward trend recovery as the Fear and greed Index enters the ‘greed’ zone

The crypto market has been in turmoil for nearly a year. However, good news is on the horizon, and analysts believe that the bull run is upon DeFi investors. The Fear and Greed Index, which measures the general opinion toward bitcoin, has entered the “greed” zone for the first time since March 30, 2022.

This could be due to the leading cryptocurrency’s price surge over the first month of the year and the broader market revival. A bull market could compensate for the considerable losses the market has incurred recently.

The crypto market begins to stabilize

Many factors point to an impending bull run. First, today’s market has been ridiculously high. What could be the reason behind this? Following an initial dip, the Total Crypto Market Cap and Bitcoin price are attempting to resume their upward movements.

According to CoinGecko, the global crypto market cap is currently $1.08 trillion. According to CoinMarketCap, the current Bitcoin price is $22,990. If the current trend continues, the next level of resistance will be at $24,500. In the event of a retreat, the $21,000 area might provide support.

On January 26, there was some intriguing crypto market news. First, Polygon flipped Ethereum for daily active addresses. The number of active addresses in the Polygon network has now surpassed 340,000.

In contrast to the global economic crisis, bitcoin has started the year on the right foot. However, the asset’s surge appears to have reversed the trend, as the gauge now reads 55 – “Greed.” The Index last reached that level almost eleven months ago.

It is worth emphasizing that increased confidence among crypto investors should not be viewed as a direct catalyst for a new bull run. In reality, the metric being in a condition of “Fear” or “Extreme Fear” could signal a good buying opportunity. At the same time, overly greedy investors could indicate that the market is due for a correction.

Dealing with the inflationary situation could help bitcoin surge more in the coming months and propel a crypto market bull run. Unfortunately, almost every revelation of US CPI statistics has increased volatility for BTC, and inflation surges have typically pushed its valuation lower.

Data showed that the United States’ efforts to fix the challenges began to yield results. The Federal Open Market Committee (FOMC) meetings are another element that could influence BTC’s price performance.

The current standard is 4.5% (the highest in 15 years), with further increases likely in the coming months.

Bull run kickstarts

As the 2023 bull run propels Bitcoin’s price to new five-month highs, the largest cryptocurrency’s network is setting new activity records. According to MiningPoolStats, Bitcoin’s hash rate set a new high on January 26th.

If the current rate of increase in BTC prices continues, a new level will most certainly be reached.

According to CryptoQuant’s research, a spike in Bitcoin prices would cause a bigger number of users and mining farms to turn on their rigs, resulting in an even higher hash rate.

CryptoQuant went on to say that an increase in hash rate would be an indication of impending heavy liquidations, which might lead to a decrease in mining activity and a subsequent price drop.

Given the cryptocurrency’s track record of bottoming out weeks ahead of the S&P 500, a positive recovery spearheaded by institutions could be a favorable indication for the US equity market. In addition, most altcoins, including Fantom, Threshold, Aptos, eCash, and Axie Infinity, have recently seen enormous rises.

Furthermore, investor statistics support an impending bull run market. Institutional investors are “not giving up on crypto,” according to the latest data, with American institutional players accounting for up to 85% of Bitcoin purchases.

According to the report, if an asset trades 24 hours and “performs well” during U.S. trading hours, it indicates that U.S. institutions are purchasing it. In contrast, an asset that grows during Asian trading hours shows that Asian retail investors are buying it.

The Federal Reserve Bank of the United States is set to convene next week to decide on the next interest rate move. The central bank will likely announce a rate hike of 25 basis points. A crypto market bull run may seem like a pipe dream if this is the case.

As the bull run rumbles on, Arizona legislators are heading toward Bitcoin adoption. Wendy Rogers, an Arizona state senator in the United States, has introduced cryptocurrency legislation, including one that would make Bitcoin legal tender in Arizona.

Rogers just announced the debut of a series of crypto bills, citing data from investment firm Goldman Sachs indicating BTC is the best-performing asset in the world. In three months, BTC is anticipated to reach $25,000. Only time will tell if the longest crypto winter will end or if a bull run will resume.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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