What the Recent Crypto Rally Means for 2023

After a year of chaos and a long cryptocurrency “winter,” the digital asset market appears to be picking up, starting 2023 with renewed vigor.

The value of Bitcoin (BTC) has risen above $18,000, and the price has been rising for more than a week now.

Since the peak of the new crown epidemic in July 2021, Bitcoin has not seen such a positive trend.

The performance of the “ancestor” of cryptocurrencies is often seen as a barometer of the entire crypto market, with other digital currencies tending to follow Bitcoin’s lead.

This was true for major altcoins: Ethereum (ETH) and other tokens also saw massive gains.

The current “bull market” move could represent a fresh start for the digital asset market, as it illustrates the market’s resilience following multiple disruptive events in 2022, including the Terra Luna and FTX crashes and related fallout.

Cryptocurrencies can survive such a hostile environment because the underlying technology and use cases of the market are worth more than individual companies.

Can 2023 usher in a big bull market? A more cautious view is that the crypto winter is thawing, but the spring is not here yet. Let’s look at a few relevant factors: the global market economy and the mining situation.

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Inflation impact on Cryptocurrency markets

The notion that the crypto market is somehow uncorrelated with the broader stock market has long been disproved, and therefore, cryptocurrency traders should always keep an eye on mainstream market activity and its impact on digital assets.

It’s worth noting that the current rally in crypto markets started 24 hours after the New York Fed announced its expected inflation rate for December at 5%.

The forecast was lower than the previous target of 5.2%, indicating that the Fed has achieved some success in controlling inflation.

Investors took the fall in inflation as a sign of a possible long-term market recovery.

As a result, the market is more willing to bet on risky assets, including: non-traditional assets such as Bitcoin, Ethereum and other cryptocurrencies.

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Could mining be viable again?

2022 is full of tough times for bitcoin miners, with many exiting and selling their holdings and equipment as cryptocurrency prices drop and mining costs increase, all making the industry unprofitable.

But after the recent rebound, the months-long sell-off by miners appears to have subsided and the situation is stabilizing again.

If the market recovers, mining will become a profitable industry again, and the prices of electronic equipment will be affected accordingly.

See Cryptocurrency Exchanges Ranking

Start Your Success 2023 with StormGain

Whether or not the recent rise is an indicator of a continued market recovery into 2023, it does indeed suggest that the crypto market remains favorable, with plenty of opportunity throughout the year.

Traders should carefully understand trends across the market (not just cryptocurrencies) and actively diversify their digital asset portfolios, combining historically proven assets with new projects with potential for explosive growth in value.

StormGain is a simple and easy-to-use all-in-one cryptocurrency platform.

This year is the fourth year since the platform was established.

StormGain is always committed to providing users around the world with the best conditions for cryptocurrency trading, currency holding and investment.

Whether you’re an experienced trader or new to the crypto world, try StormGain’s smartphone app or web-based platform to access over 55 high-quality crypto instruments including: top cryptocurrencies, tokenized stocks and indices.

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