January was bullish for cryptocurrencies, and February is also starting pretty well. After the latest updates by the US Federal Reserve (Fed) and the International Monetary Fund (IMF), Bitcoin is the first decentralized digital currency. It was created in 2009, by an anonymous founder or group of founders... More (An abbreviation for Bitcoin.) regained $24k per token. That’s an increase of over 4% in barely 24h [CMC]. Everything indicates that inflation in the US and the world is receding.
This Wednesday, the Fed announced a raise of interest rates by only 0.25%. This is the second rate cut in ten months. After applying five consecutive increases of 0.75% since June 2022, the Fed lowered the increase to 0.5% in December. Despite the good news, this isn’t all. The Fed will continue to increase the rates at some point in the year to keep inflation low.
Meanwhile, the IMF assured that the raise of interest rates by central banks worldwide (the US isn’t the only one), is paying off. As an immediate consequence, the economy might slow down compared to previous years, but inflation is also decreasing. According to their January 2023 World Economic Outlook:
“Global growth will fall to 2.9 percent in 2023 but rise to 3.1 percent in 2024 (…) Rising interest rates and the war in Ukraine continue to weigh on economic activity. China’s recent reopening has paved the way for a faster-than-expected recovery. Global inflation is expected to fall to 6.6 percent in 2023 and 4.3 percent in 2024.”
Bitcoin reacted almost immediately to the news, recovering a $24k price and still in green. At the same time, the whole market cap gained over 4.2% in one day. Other winning coins in the same period include Optimism (+26%), Polygon (10.8%), Aave (9%), Lido (8.8%), and Zcash (6.1%).
Bitcoin at $24k: it could increase more?
Likely the answer is yes since we’ve already seen it. Bitcoin hit an All-Time High (ATH) of $68,700 in November 2021 and touched $24k for the first time in 2020. Several crypto experts and analysts are betting on higher prices, even. A recent example is a report by the company Matrixport, which points out that BTC could reach at least $45k by December 2023.
On the other hand, the known bitcoiner Michael van de Poppe believes that Bitcoin will hit $50k in mid-2023. For the investor Tim Draper, Bitcoin can reach $250k by the end of 2023. However, as Matrixport affirmed in their report, a peak bullish market may not present before the halving (mining rewards reduction) in 2024.
The analyst Plan B expects over $288k in 2024, and a Finder’s expert panel predicts over $93k per BTC for 2025. Ark Investment goes beyond. For them, if Bitcoin is adopted by more countries as legal tender and reaches 50% of remittances worldwide, it can hit $1 million per token by 2030. We still have a way to go, though.
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