Bitcoin (BTC) is up nearly 30% year-to-date to $21,600 and hit its best price since September 2022, a promising start to the year for the world’s top cryptocurrency and for an industry that spanned the year. been through successive crises that threatened to collapse the system.
Apart from Bitcoin, Ether, the second largest cryptocurrency, rose to more than $1,600 on Tuesday, which implies an increase of 32% since the beginning of the year and the highest price in more than two months.
In the same way, other smaller tokens or altcoins such as Cardano and Polygon, gained more than 30% in the last weeksdragged down by what appears to be a relief in the selling pressure that these assets have had since November 2021.
In this sense, the recovery in the price of BTC and the crypto market in general occurs despite the fact that the crypto industry is still dealing with the consequences of the collapse of the FTX empire and other truncated company projects, which led companies to bankruptcy. smaller ones and hundreds of thousands of savers to lose their money.
According to the opinion of specialists, The market is facing a seller’s exhaustion, after 14 months of bearish pressure that almost didn’t stop and that took BTC from trading at $69,000 in November 2021 to less than $15,500 exactly one year later.
Meanwhile, many cryptocurrency companies are still tightening their belts, with some of the biggest companies collectively losing thousands of jobs in the first weeks of the year, according to a Bloomberg analysis.
Bitcoin is now at the highest levels since the collapse of the FTX crypto exchange rocked the market almost three months ago, inspiring hopes that this bear market may be losing its ferocity.
“What we have experienced in the last few days in the Bitcoin and cryptocurrency market is the strongest sign that we have been close to bottoming out for this cycle. And we may have already bottomed out,” said Les Borsai, director of strategy at crypto asset manager Wave Financial.
“We could fall further, I have to be cautious, but the macro environment is showing signs of easing and is giving way to a potential market reversal.”he added.