Ahead of the Chinese New Year, the price of bitcoin has increased since August
The biggest cryptocurrency, Bitcoin, increased by as much as 2.1% to $22,786, its highest level since August 18. Over Friday and Saturday of the weekend, it also saw significant rises. Ether, which is currently in second place, increased up to 2.4% to levels not seen since September.
Ahead of the Lunar New Year holiday celebrations in Asia, bitcoin surged to its highest levels since August, rising at the start of the weekend for a second consecutive time.
The biggest cryptocurrency increased by much to 2.1% to reach $22,786, its highest level since August 18. Over Friday and Saturday of the weekend, it also saw significant rises. Ether, which is currently in second place, increased up to 2.4% to levels not seen since September. This occurs at the beginning of the Lunar New Year holiday, also known as Chinese New Year, which is celebrated across much of Asia and amid more forecasts that the bitcoin market has reached its bottom.According to Markus Thielen, head of research at Matrixport, buying Bitcoin towards the conclusion of the first day of Chinese New Year and selling it 10 trading days later would have generated an average return of +9% over the past eight years (2015–2022). The start of the Chinese New Year has historically been a desirable entry time for long holdings.Since the beginning of 2023, Bitcoin and Ether have increased by more than 35%, helped by a more encouraging macroeconomic outlook. According to the preliminary poll results from the University of Michigan, US short-term inflation forecasts decreased in early January to the lowest level in over two years, boosting consumer confidence more than anticipated. Following the continued cooling of prices, the Federal Reserve is on pace to pivot to smaller interest-rate hikes, though it's expected to keep raising rates until pressures show more definite indications of weakening.Even bulls, though, show some reserve. With problems like the turmoil at Digital Currency Group still looming large, Sean Farrell, head of digital asset strategy at Fundstrat, predicts that Bitcoin will rise to $35,000 to $44,000 this year and that Ether will reach $2,400 to $3,200. However, he still cautions that there may be trouble in the markets.Despite believing that the majors' absolute lows have been reached, Farrell said in a note on Friday that there are still some short-term hazards to be aware of. The upcoming FOMC meeting will likely take another swing at risk assets, and despite the recent bounce, we are still in the midst of what we would consider an on-chain bear market, among other things.
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