Why are cryptocurrency prices soaring?

Source: Pexels.com/Anna Nekrashevich

of The cryptocurrency market is up 4% in the last 24 hours, Prices rose in response to the release of positive US inflation figures today. At $920 billion, the total market capitalization rose 7.5% over the past week, as well as 3.8% over the past 30 days, supported by the arrival of stronger sentiment. more positive about the direction of the US (and global) economy.

of US CPI data for December SHOW a further drop in inflation (from 7.1% in November to 6.5%), then there are growing expectations that the worst of the 2022 macroeconomic downturn is over. And since interest rates are likely to follow inflation, 2023 could see even bigger increases than today, especially for the cryptocurrencies listed below.

Bitcoin (BTC)

of BTC is currently up over 4% in the last 24 hours, after staying around the $18,000 level overnight. At $18,105, it is also up 7.6% in a week, 10% in a fortnight and 5% in a month, although it remains 73% below its all-time high of $69,044, set in November 2021.

Source: TradingView

The BTC chart reveals a strong momentum build-up as shown its relative strength index (purple), which has been above 70 for about a day. This signals significant buying pressure, and while some may argue that a score above 70 means that BTC is now overbought relative to recent moves, the fact that its 30-day moving average (red) is below its moving average The 200-day (blue) suggests otherwise. .

More fundamentally, if any cryptocurrency stands to benefit from improving macro conditions and a return to macro, it’s bitcoin. As the largest crypto by market capitalization, it is likely to attract more outside investment, especially from institutions.

Indeed, even with the bear market of 2022, banks and other financial institutions have set the stage for another bull market (with about three-quarters of institutions planning to invest in crypto in the future). BNY Mellon AND N26 have launched cryptocurrency-related services in recent months, joining the growing ranks of banks with some form of presence in the digital asset space.

This will make investing in cryptocurrencies more accessible to ordinary investors and, in general, institutions still prefer bitcoin over anything else. Here’s why bitcoin is poised to rise if conditions continue to improve.

Ethereum (ETH)

ETH is up 4.5% today, with the current price of $1,387 marking a 10% jump over the past week and an increase of 8.5% in one month. Of course, like BTC, ETH is also down 72% from its ATH of $4,878, reached in November 2021.

Source: TradingView

ETH appears to be on track for a quick rally, given the combination of a rising RSI and a 30-day moving average that should regain ground on its 200-day run.

In effect, many analysts have been predicting a huge ETH rally for months, and for some, ETH is expected to grow more aggressively than BTC this year. That’s the view of Bloomberg’s Mike McGlone, who recently tweeted that the ETH to BTC price ratio has been rising more or less since early 2021, during the last bull market.

McGlone expects this trend to continue when the cryptocurrency market (and the global economy) returns to growth, which it already appears to be. And while his views may be controversial to some, ETH certainly has the makings for big rallies this year.

First of all, The September merger put Ethereum on the path to greater scalability and efficiency, while its move to stock testing (along with other improvements) now means it’s very close to becoming deflationary. As the following tweet from Velvet Capital points out, periods of increased network activity will cause deflation, which will drive up its price.

Moreover, Ethereum is already Largest layer 1 blockchain by total value locked, which accounts for about 60% of the entire DeFi sector. And with new updates on the horizon, this can only increase in the future.

Avalanche (AVAX)

AVAX is one of the 100 best performing cryptocurrencies today, rising 20% ​​in 24 hours. At $14.97, it also rose 24% in a week and 15% in a month.

Source: TradingView

AVAX’s RSI is showing a sudden increase in buying pressure and there is a simple reason for this: Avalanche announced a partnership with Amazon Web Services. What this means is that AWS will use the Avalanche protocol to develop enterprise blockchain solutions for businesses and governments.

This could lead to the mass adoption and use of Avalanche, as well as AVAX. When you combine this with the fact that AVAX has been oversold and undervalued for so long, the altcoin could see a dramatic rise this year.

In effect, Avalanche remains the fourth largest layer 1 blockchain network by total block value, and also happens to be younger than the three platforms before it (Ethereum, BNB Chain and Tron). It was put into service at the end of 2020, and therefore has not yet had the opportunity to develop.

Lido DAO (LDO)

At $1.91, LDO has gained 7% over the past 24 hours, as well as 39% over the past week. Impressively, it’s also up 100% in a fortnight and 80% in the last 30 days, while it’s up 340% since hitting an all-time low of $0.406150 in June 2022.

Source: TradingView

LDO has been doing well since it appeared Lido DAO was the largest dap in the cryptocurrency ecosystem, surpassing MakerDAO in terms of total value locked. The two apps have traded places since then, but the fact that Lido came out on top underscores the importance it will have now that Ethereum has moved to a proof-of-stake consensus mechanism.

As the largest staking service for Ethereum, Lido has seen increased usage since September, benefiting from its LDO governance token.

In the same time, Ethereum developers have confirmed that participants will be able to withdraw their ETH stake from March. This situation has also contributed to increased interest in Lido DAO and LDO in recent weeks and is expected to continue throughout 2023.

Meta Masters Guild (MEMAG)

While she opened the pre-sale just yesterday, Meta Masters Guild raised over $70,000 in the first 24 hours. This is an impressive result for the new cryptocurrency gaming platform, which will be used to develop a growing range of games and Web3 games to win when it launches its first game (Meta Kart Racers) in the quarter of third of the year.

The sale of MEMAG tokens will take place in seven stages, with the first and current offering 1 MEMAG for $0.007. This price will increase by 42% next week and gradually increase to $0.023 in the seventh phase, which means that early investors will benefit from a 228.5% increase before the coin is listed.

Investors can participate in the sale by visiting The official site of the Meta Masters Guild and linking their Wallet Connect or MetaMask wallets. And how the platform already has more than 22,000 Twitter followersit is likely that many more will join her.

Fight Out

Based on the Ethereum blockchain, Fight Out Is one platform that aims to advance the industry move to win, mixing real life exercises with Web3 and metaverse. It will track and reward a much wider range of activities than previous M2E platforms, offering boxing, weightlifting and yoga workouts. The project offers a variety of in-app and IRL classes at its own branded gyms.

Its symbolic sale began in December and already has raised more than $2.8 million. One FGHT token currently sells for $0.0166. The sale is expected to close in the second quarter of 2023, when the app is expected to be released.

C+Charge (CCHG)

Using the growing environmental awareness of the cryptocurrency industry, C+Charge (CCHG) is a peer-to-peer payment network for electric vehicle (EV) charging stations.. Operating on the BNB chain, its main focus is to use blockchain and cryptocurrencies to expand access to carbon credits, with its domestic CCHG intended to be used within its network by EV owners to pay for the charging of their vehicles.

C+Charge will also reward users with carbon credits based on NFT for charging their EVs at its stations, encouraging people to go green. The company has also already signed a partnership with Carbon flow and with Perfect Solutions Turkey, adding 20% ​​of EV chargers in Turkey to its network.

Its token sale began in December, with 1 CCHG available for $0.013. This price is expected to increase soon, so those interested are advised to act quickly.

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