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Bitcoin rose over the weekend ahead of the Lunar New Year holiday and Spring Festival celebrations across Southeast Asia, gathering at its highest level since August.
The flagship cryptocurrency soared above $23,000 on Saturday, up as much as 10% compared to the previous day at one point, according to CoinMarketCap data. This is a level he hasn’t seen in over five months. Bitcoin is currently trading at around $22,900, roughly flat over the past day.
Ethereum, the second-largest cryptocurrency, also posted a significant rally, reaching a local high of around $1,674. Market capitalization exceeded $1 trillion.
The rise comes when Bitcoin performed well at the start of the Lunar New Year holiday, which is historically celebrated in much of Asia, and is often referred to as Lunar New Year.Markus Thielen, head of research at Matrixport The Chinese New Year holiday is considered a good time to enter for investors, according to the company.he Said:
“If you buy bitcoin at the end of the first day of Chinese New Year and sell bitcoin 10 business days later, all of the past eight years (2015-2022) have shown positive returns, averaging +9%. There would have been a return, and the start of the Chinese New Year is an attractive entry timing for long positions.”
Bitcoin and Ethereum are up about 38% and 35% year-to-date. A variety of factors may have contributed to crypto’s impressive start to the year, but the market has managed to gain momentum after new data released by the US Department of Labor last week showed inflation cooling down. .
Annual inflation eased to 6.5% in December compared to 7.1% in November. Lower inflation is usually seen as bullish for risk assets like cryptocurrencies. This is due to pressure on the US Federal Reserve (Fed) to slow rate increases.
Meanwhile, cryptocurrency bulls expect the cryptocurrency market to continue its upward trend, with Sean Farrell, head of digital asset strategy at Fundstrat, predicting that Bitcoin will trade between $35,000 and $44,000 this year, while Ethereum will trade between $2,400 and $2,400. We expect it to reach $3,200. But he still warns investors to beware of short-term risks. He said:
“Despite our view that absolute lows for Majors are in, we still believe there are some short-term risks to be aware of. , another swipe to risk assets at the next FOMC meeting, and the fact that despite the recent rally, we are in the midst of what we consider to be an on-chain bear market. increase.”
