Cryptocurrencies are seeing a significant recovery as investors take advantage of the recent stock market rally and increased risk appetite. Bitcoin hits its highest in two weeks, extending gains from earlier this week that had seen it climb to $41,938 per coin on Saturday morning (Jan 24th).
Related Reading | Bitcoin mimics stocks rally, hits two-week high
Bitcoin, the largest digital currency globally, has hit $41,938. It is 16% high from Thursday’s low and 27% from the current year’s low of $32,950.
Ether, the second-largest digital currency, has scaled new heights, reaching $3K for the first time since January 21.
Bitcoin recorded its biggest single-day gain since mid-June as fears of faster than expected Fed rate hikes led to an increase in inflation, with the cryptocurrency also being roiled by technological innovation. However, Friday’s 11% rise was enough to consider haven against this trend and get some positive press at least until Monday when everything will likely go back down again.
Bitcoin Price Recovery: Thanks to Amazon
Despite a long week of volatility from earnings, US stocks ended the week strong. The tech-heavy NASDAQ secured gains thanks to Amazon’s robust growth and Facebook owner Meta Platforms’ disappointing results that evening gave them more confidence in their business models moving forward.
Related Reading | Amazon Strong Growth Attributed to the Cloud Despite Retail Headwinds
Bitcoin has moved seamlessly into the mainstream. That resulted in investors looking to get in on the action when risk appetite is low. Ed Hindi, Chief Investment Officer of Tyr Capital, said;
“The current panic and volatility surrounding bitcoin are based on a fundamental misunderstanding of it as an asset class. When valuations on the Nasdaq fall, misguided institutional investors start liquidating bitcoin positions en masse as if it were a tech stock.”
The recent rise in the stock market has given other listed crypto assets a boost. As a result, some currencies even reached new highs.
BTC Price Prediction
Though prices for Bitcoin have seen a significant drop in the last week of January and were sitting at 47% of their all-time high, the cryptocurrency recovered slightly after reaching a low of $33K on Jan 24, 2022, and is worth about $42k.
Buy, sell and hold? Analysts are split on whether or when to buy cryptocurrency. But more than half believe this is a good time for buyers, with only 45% disagreeing.
The experts from the top fintech companies predict that by the end of 2022, bitcoin will reach an all-time high of $93,717 – more than 24K dollars higher than its current all-time high price.
This is a great time to invest in cryptocurrency. Experts predict that by the end of 2025, bitcoin will trade at $192k and mount up over 300% from its November 2021 peak and reach nearly half a million dollars by 2030. While these predictions may seem lofty goals at first glance, they’re significantly less than what experts predicted back in July 2021 when their last forecast said bitcoins prices could reach 265k or 706K, respectively.
Featured image from Pixabay, chart from TradingView.com