Bitcoin Price Increasingly Scary, Crypto Returning 'To The Moon'?
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Loading... - Chang Chen
- 30 Jan 2023
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The digital asset price of the Bitcoin crypto token has been observed strengthening this week in response to the weakening of the US dollar index.
During trading on Saturday (28/1/2023), the price of Bitcoin was priced at US$ 23,090/BTC, up 3.5% compared to the closing price the previous week.
The price of Bitcoin has indeed strengthened in early 2023. In early January 2023, the Bitcoin price was still below US$ 17,000/BTC.
After having been under great pressure throughout 2022, the Bitcoin price for the first time returned to US$ 20,000/BTC on January 14, 2023.
By year to date (ytd) the market capitalization value of Bitcoin has risen 39.3% and Bitcoin's appreciation has outperformed its competitor, Ethereum, which recorded a gain of 33.49%.
The rising trend in crypto token prices responds to the weakening of the US dollar index. At the start of 2023, the US dollar index, which measures the greenback's strength against other currencies, was observed to have weakened 1.54%.
If at the beginning of the year the US dollar index was still in the range of 105, now it has fallen to 102. The weakening of the greenback opens up space for strengthening crypto tokens because they are considered as substitute assets for fiat currencies.
The decline in the US dollar index is not without reason. This is because market players see that inflation has started to decline and the threat of recession is becoming more visible. Read More…
