Last year saw consecutive collapses in the cryptocurrency market, with contagion spreading among all companies in the digital sector. At the same time, the number of new investors increased, along with heightened regulation. What about the trajectory of the most famous currency in the history of crypto, Bitcoin? After a significant drop in its prices, cryptocurrencies are recovering, and their prices are rising again.
The market capitalization of cryptocurrencies rose by about 5 billion dollars to a total of 1.068 trillion dollars, marking the highest level since last September, thanks to the current upward trend in Bitcoin prices along with Ethereum and other major coins. This is a strong sign of the return of bullish speculators to the market, particularly as U.S. central banks successfully curb inflation and rescue the economy from slipping into recession. The current market momentum is expected to continue if macroeconomic factors and conditions remain favorable. Furthermore, trading in cryptocurrencies saw a significant increase of 7.9%, reaching 61.64 billion dollars.
As for the most famous currency, Bitcoin, it has been on a continuous rise since the beginning of 2023, with its price jumping from around 16,000 dollars to above 23,000 dollars. When will Bitcoin reach its peak?
Fifty-six experts in the cryptocurrency sector surveyed by Finder predict that the return will be slow to the bull market, expecting Bitcoin to reach its historical peak of 68,000 dollars in 2025, not this year or next year. The study, conducted on more than 50 cryptocurrency analysts, predicted that Bitcoin would break the 26,000-dollar barrier in 2023 and would not regain its all-time high of 68,789 dollars until 2025. They also forecast a decline of 13,000 dollars this year, with the lowest price being 10,000 dollars, suggesting that Bitcoin will hover between 10,000 dollars and 26,000 dollars this year.
**Bitcoin: The Best Performing Asset in the World?**
At the beginning of 2023, Goldman Sachs described Bitcoin as the best performing asset in the world, ranking it first among investment products like gold, oil, and real estate. Goldman Sachs added Bitcoin to its traditional returns report for the first time in 2021 and announced the start of digital currency services in 2022, responding to client demand, despite previous criticisms of digital assets.
**Will U.S. Interest Rates Crush Cryptocurrencies?**
It is difficult to confirm whether a potential rise in interest rates in the United States could cause Bitcoin prices to collapse again, as many factors can influence Bitcoin prices, including sentiment, market trends, and government regulations. Additionally, any change in U.S. interest rates could strengthen or weaken the U.S. dollar, which could have a direct impact on Bitcoin prices.
