Why are crypto prices rising? 2023 off to hot start

After what was, to put it mildly, a rather disappointing year in cryptocurrency in 2022, the new year has jumped out to a positive start.

Bitcoin, Ethereum and all their other friends got ravaged last year, but nine days into 2023 there is green on the board. Nine days after 2023, the table turns green.

After what was, to say moderately, a rather disappointing year in the cryptocurrency in 2022, the New Year has taken a positive start.

Bitcoin, Ethereum and all their fellow friends were devastated last year.

Macro provides the pulse for run crypto the main reason for the crypto-currency jump this year is the same reason that pulled the whole space down last year: macro. The equity market started the new year in a positive light. This is due to lower-than-expected inflation data in the world.

While we still have a long way to go to fight this spiralling cost of living crisis, The latest data has given investors hope that central banks will sooner rather than later abandon their policy of high interest rates. After a decade of low interest rates, the world shifted to a new interest rate paradigm in 2022, as rates were aggressively pushed higher in response to the inflation crisis. It was a question of slowing down demand and, finally, driving up prices. So all of the risk assets have been removed, and there's nothing more risky than cryptography.

Following a decade of low interest rates, the world shifted to a new interest rate paradigm in 2022, as rates were aggressively raised in response to the inflation crisis.

The purpose of the measure was to curb demand and ultimately drive up prices. Solana dissociates itself from the market of course, whereas the macro is clearly the great engine here, there are still risks and idiosyncratic events in the crypto space.

Look no further than last year, when three events (luna, celsius and ftx) caused great falls and spreads in the stock exchange, which moreover displayed an extremely high correlation with Bitcoin.

I wrote a piece last week diving deep on Solana, but suffice it to say the coin has big problems. I did an article last week on Solana. Suffice it to say that the piece has great problems.  

This rise over the last week may be at least partially attributed to Bonk, the latest meme coin phenomenon which I also analysed last week. The graph below shows that if this rebound seems important at 65%, it remains a drop in the ocean compared to the free fall it has known.

This increase in the last week can be at least partially attributed to the bonk, the last phenomenon of the meme piece that I also analyzed last week.

We now know not to read too much through dog chips. Nevertheless, the increase has at least mitigated some of the pain for Solana investors. Is this bitcoin still increasing?

As far as the future is concerned, it's speculation.

The next great day is Thursday, when the latest figures of the consumer price index are revealed. If U.S. inflation is lower than expected, you can expect that markets will recover with renewed hope.

We now know not to read too much out of dog chips. In turn, the Fed argues that rates will keep going up as long as inflation is high.