Opinions of experts and ordinary people about the future of virtual currencies differ greatly. Some consider them a "soap bubble" and predict a quick collapse of cryptocurrencies. Others say that growth will continue.
Particularly heated discussions are taking place around the prospect of using cryptocurrencies, the advisability of investing in them, and attempts to legislate their circulation.
After a significant drop, the value of Bitcoin has risen by more than 28% since the beginning of January. As of January 16, 2023, the value of Bitcoin was $20,825.
The increase is the largest for the first month of the year since a 31% increase in 2020. Other major cryptocurrencies are also rising in price.
Currently, everyone is interested in the question of whether this is the beginning of a bull market and what factors influenced the growth of the asset price.
A review of various sources of information suggests that the growth of cryptocurrency is partly a bet to stop the sharp increase in interest rates. Incidentally, traditional assets such as stocks, bonds and gold reacted similarly.
Central banks such as the Federal Reserve promise to keep rates high until the still-high inflation is under control. On the one hand, it is positive that the rates will no longer increase, on the other hand, they are not yet decreasing.
It should not be forgotten that the crypto industry will continue to feel the consequences of the FTX bankruptcy. Other market players, such as crypto brokerage Genesis and its parent company Digital Currency Group, are trying to resolve debt issues, but whether this resolution will be positive remains in question.
Some authoritative participants in the cryptocurrency market believe that the recent rise in the price of Bitcoin is not yet a reversal of the bearish market. At the same time, some technical indicators indicate that this jump is becoming a long one.
As for me, I believe that we are entering the stage of a long-term rise in the price of cryptocurrencies. Even if there is another drop ahead, I don't think it will be a continuation of the bull market. So I invested part of my money in cryptocurrency and will wait for my profit.
