Traders eye signs of next Bitcoin bull run

17 Jan 2023

Following a robust week for Bitcoin and other cryptocurrencies, traders are now focusing on indicators that could trigger the next bull run.

The world’s largest cryptocurrency and others were hammered by losses for most of last year, yet are on the rise this year, fuelling forecasts the crypto winter may be coming to an end.

The New Year got off to a good start for Bitcoin, and last Saturday, it exceeded $21,000 for the first time in 60 days. BTC is trading at $21,090 at the time of writing, a 25% rise in seven days, according to Coingecko data.

In addition, the prices of major cryptocurrencies could skyrocket if U.S. economic data this week shows the Federal Reserve could be moving closer to ending its rate hiking cycle, News BTC reports.

According to Oanda senior market analyst Ed Moya: “Wall Street is very confident that the end of the central bank’s tightening cycle is upon us, and that is providing some underlying support for crypto.” 

Despite Bitcoin’s recent upward move, it remains a long way away from its all-time high hit in November 2021 of $68,990. 

Last year the entire crypto market lost more than $1.4 trillion in value due to several headwinds, such as bankruptcies, liquidity issues and the collapse of the FTX exchange.

The so-called “contagion” was soon prevalent throughout the whole cryptocurrency market following the series of insolvencies. Indeed, after the FTX collapse, the world’s largest cryptocurrency declined to a two-year low of $15,480. 

The recent surge in the value of Bitcoin could be down to a boost in optimism amongst Bitcoin ‘whales’, major buyers of the cryptocurrency, which according to analysts, helps to bolster the current high demand levels. This is according to data released by the crypto firm, Kaiko. 

Mounting forecasts that the Federal Reserve will halt rate hikes in the near future may also have led to Bitcoin’s rise in value.