Bitcoin has started a great year with a hike in cryptocurrency market value. On Thursday, the crypto market gain momentum by shrugging off a strict regulatory stance from the U.S. government. According to Coin Metrics, Bitcoin gained 2.06% to $24,500.00 at around 4.04 p.m. ET whereas ether was up 1.21% at $1,679.31. Vijay Ayyar, vice president of corporate development and international at crypto exchange Luno said that there is an indication of a market upsurge last November, and eliminating any kind of bad news is a typical sign of believing the worst time of the market is over.
Crypto markets were on high prior to this week following increased regulatory scrutiny from the U.S. government on digital currencies. On Monday, the New York State Department of Financial Services asked Paxos to stop minting new Binance USD, or BUSD, stablecoins. It is a kind of cryptocurrency that is pegged to a real-world asset and backed by assets like bonds or cash.
On Thursday, the cost of bitcoin settles at its highest level since the middle of August last year. In 2022, around $1.4 trillion was washed off the crypto market which witnessed bankruptcies, and failures of projects and companies. Collapsing major exchange FTX is a huge hit for the crypto market. As per Yuya Hasegawa, an analyst at Japanese crypto firm Bitcoin Bank, “The Wednesday’s gain in Cryptocurrency was led by bitcoin which is surprisingly held in the market.”
The rising interest rate was curated by the Federal Reserve to answer inflation and also impacted the Crypto market positively. Bitcoin is somehow related to equity markets. It has done great by performing the outstanding index and is around 49% high this year. Through the uprising in the Crypto market, there is a chance of a lower economic downturn which may result in a slow down the interest rate hikes. In the current market scenario, inflation is coming down which is a good indication of no big recession.
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