The general increase in risk appetite has proved healthy for cryptocurrencies, and most of these digital currencies have turned the corner since late 2022.
What’s Driving Crypto Revival? The cryptocurrency space went through a torrid phase in 2022, stung by the risk aversion of investors and segment-specific issues such as the collapse of Luna LUNA/USD and the implosion of cryptocurrency exchange FTX, whose native token is FTT FTT/USD.
The beaten-down nature of most cryptos is likely to have triggered bargain-hunting-related buying.
Hopes of a Fed pause, which has been the thesis behind the stock market revival, appear to be working for cryptocurrencies as well. The central bank has been aggressive in the rate-tightening cycle. Since March 2022, the Fed funds rate has been increased by 25 basis points twice, 50 basis points twice and by a steeper 75 basis points four times.
Lower interest rates could kickstart economic growth to levels that could buoy the risk appetite of investors.
Bitcoin’s Resurgence: Bitcoin BTC/USD, which is the apex crypto with a market cap of $478.53 billion, wasn’t immune to the downturn either. After peaking at $68,789.63 on Nov. 10, 2021, the crypto headed southward and was down for most of 2022.
Last year alone, Bitcoin lost 64.3%, although it ended the year off the low of $15,599.05 reached on Nov. 21, 2022. As 2023 dawned, buyers returned to the cryptocurrency market. Capitalizing on the change in sentiment, Bitcoin breached the $20,000 mark in mid-January.
On Sunday, the crypto rose above the $25,000 mark for the first time since mid-August 2022. So far this year, Bitcoin has gained about 50%.
See also: How To Trade Cryptocurrency
Chart Via Benzinga Pro.
Doge On A Sprint: Meme crypto Dogecoin DOGE/USD, a crypto investor favorite, peaked well ahead of the rest of the cryptos.
While a few shun Doge as a joke coin with no intrinsic value, the interest in it is evident from the results of a recent survey by digital media company Cryptomeister.com.
Doge is the third most-searched cryptocurrency in the U.S. after Bitcoin and Ethereum ETH/USD. The firm attributed the strong interest to the popularity the doge-themed currency gained in the wake of tweets and endorsements by high-profile figures such as Elon Musk, the CEO of Tesla.
Following Musk’s “Saturday Night Live” appearance on May 7, Doge hit its record high of $0.737567. In 2022, it bottomed at $0.049720 on June 18 and has nearly doubled since then.
Bitcoin Vs. Doge Matchup: A $1,000 investment in Bitcoin at Monday’s closing price of $24,829.15 would fetch 0.040 Bitcoin. If the apex crypto retests its record high, the same 0.040 Bitcoin would be worth about $2770, a 177% return.
Similarly, $1,000 invested in Doge’s closing price of $0.088208 would fetch 11,337 Dogecoin. If the meme crypto were to scale its May 2021 high, the 11,337 Dogecoin would be worth $8,362, a potential return of roughly 736%.
Price Moves: At last check, Bitcoin traded up 2.38% at $25,095.23 and Dogecoin edged up 0.01% to $0.088179, according to data from Benzinga Pro.
Read next: Shiba Inu Climbs To Key Resistance After Breaking Out Of Consolidation Range: What You Should Know
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
