Over the past few weeks, traders and analysts everywhere have been talking about how great bitcoin and Ethereum are doing. We’ve also published a few articles talking about the January price booms witnessed by BTC investors.
Bitcoin Is in a Good Spot, but What About the Rest?
Ending the 2022 year in the mid-$16K range, it appears bitcoin has made its way back up the financial ladder and is now trading for more than $19,000, something we haven’t seen since mid-November of last year.
It makes sense that bitcoin and Ethereum would take up all the headlines given they’re the largest and most prominent crypto assets, though this isn’t entirely fair given how strong some of the smaller coins in the industry have been doing. Alex Kuptsikevich – a senior market analyst at FX Pro – commented in a recent interview:
Investors are hoping the bear market is over with [at] the start of the new calendar year.
Indeed, it looks like that may be the case. After all, bitcoin has jumped by more than 12 percent in recent weeks and added about $3,000 to its overall price. However, there are smaller coins that seem to be doing just as well – if not better – that aren’t getting nearly as much praise or attention.
For example, Cardano and Solana have each jumped up by more than 20 percent since the early weeks of January. Solana is particularly praiseworthy given its ties to FTX. These ties ultimately caused the currency to slide more than 90 percent since its November 2021 rally. Now, however, the asset appears somewhat poised for a comeback, and it hopes to garner the top ten position it once held.
Another currency known as Aptos – which is often labeled an Ethereum competitor – has also shot up by more than 30 percent at the time of writing. While it may seem like the crypto space is on a healing path, several analysts are warning traders to stay alert. They believe we’re not quite out of the woods yet, and they advise doing anything crazy until the market shows true evidence of recovery.
Don’t Go Nuts Just Yet
Michael Safai at Dexterity Capital explained in a statement:
Bitcoin and other major cryptocurrencies have been trading in a tight range for the better part of a month. Cooling inflation and a slower news cycle are enabling cryptocurrencies to break some of that correlation to equities and the global macro that drove prices in 2022. Any recovery will continue to be a long, slow march and the sensitivity to headline risk remains. It’s likely, however, that we still have a couple of big shakeouts left in crypto, with some bankruptcy messes that [need] to be sorted and other firms still fighting to stay solvent. This will have a bigger impact on prices over the next couple of months.
