Bitcoin price it rallied nearly 20% over the weekend to settle back to around €20,000, which is basically where the price of cryptocurrencies was before the FTX exchange fell. The exact causes of this surprise increase remain to be determined. But we note that the macroeconomic context is showing more positive signs than in recent weeks.
Among them is the slowdown in inflation, particularly in the US – revealed by the latest report Consumer Products Index of the United States Department of Labor. Between November and December 2022, the price level increased by an average of 0.5% per month, which is slightly higher than the 0.4% expected by experts but still well below the inflation rate of the previous two months.
Is the rise of Bitcoin observed since this weekend really sustainable?
Precise forecasts for 2023 remain unknown. But it could be that some investors already consider at this stage that this is a sufficient sign of improvement to consider again diversifying their bets with even riskier investments such as cryptocurrencies.
However, analysts generally prefer to remain very cautious at this stage. An analyst quoted by Fortune, for example, claims that the price of Bitcoin is unlikely to cross the $21,500 mark in the short term. According to him, the price is mostly the result of recent investor behavior, but they are not likely to maintain this virtuous cycle.
An analyst quoted by The Block suspects this increase will be driven primarily by investors looking to exploit short-term liquidity gaps as many major players have exited the cryptocurrency market. If this is confirmed, once again, it is probably a sign that this increase will not be sustained over time.
However, the analyst observes that the market as a whole is 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 cryptocurrencies have seen their prices dragged in the same positive trend over the period, but to a much lesser extent.
For example the course of Ether it grew by just over 12% over the period. Similarly, Binance Coin has gained around 6% over the period. Dogecoin is up 10% in the last 10 days. Certainly positive signals but which should invite those who could invest in crypto to remain extremely cautious.