Halfway through the year, 2023 has shown to be a successful one for bitcoin and the cryptocurrency sector.
Investors were very pessimistic six months ago as they rang in the new year. Because of legal ambiguity and the demise of crypto behemoth FTX, the price of one bitcoin had dropped to below $16,000, a significant decrease from its previous high of $69,000 set in 2021.
Cryptocurrency Rebounds Following A Turbulent 2022
But after six months, bitcoin’s value has mostly increased, and investors’ apprehension is gradually giving way to hope.
Currently, the price of bitcoin is approximately $31,000, which is close to levels last seen in June 2022. That indicates an increase of around 87% since the beginning of the year, which is extremely amazing for only six months.
And other digital assets have outperformed bitcoin in the first half of this year.
Since the beginning of January, Ethereum, the second-largest coin by market capitalization, has increased by more than 60%, ripple by over 40%, and cardano by a more modest 16%.
For starters, the macroeconomic situation has been less erratic than it was last year, and fears of a recession have partly subsided in recent months, even though many experts continue to forecast one.
Investors often avoid risky investments during downturns in favor of safer, more reliable repositories of value.
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Investors Opt For Holding Amid Market Reassurance
Since cryptocurrencies like bitcoin and others are still a relatively new asset class, those who have invested in them started liquidating their holdings last year out of concern that a crash could set off a domino effect.
But now that everything appears to be more steady, investors might feel more secure in sticking onto their assets or even acquiring additional cryptocurrency.
Despite the Fed raising rates and all of the recession rhetoric, the traditional stock market has also managed to perform well and remain above water.
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