• Crypto prices have seen a 1% gain in the last 24 hours, with its total cap reaching $894 billion.
• Fixed-income manager Jeffrey Gundlach argued that bond yields provide a more reliable indicator of future interest rates than hints and informal comments from Federal Reserve officials.
• Inflation is easing in various countries and employment is rising, which suggests that 2023 could bring more sustained rallies in the cryptocurrency market.
The cryptocurrency market is showing signs of hope after a difficult year in 2022, with prices posting a 1% gain in the past 24 hours and its total cap reaching $894 billion. This 6.5% increase in the last two weeks is a positive sign and suggests that crypto may be set for a sustained rally in 2023.
The market experienced a number of issues in the past year, such as the Terra and FTX collapses and a 64% price fall. However, the positive news is that there are a number of macroeconomic indicators which suggest that this year could see a more sustained rally in the cryptocurrency market.
Inflation is easing in various countries and the employment rate is rising, which is a good sign for risk-on investors. Moreover, fixed-income manager Jeffrey Gundlach argued that bond yields provide a more reliable indicator of future interest rates than hints and informal comments from Federal Reserve officials. He said that “My 40-plus years of experience in finance strongly recommends that investors should look at what the market says over what the Fed says.”
In addition, the market is saying that the Fed’s base rate may not rise much higher than its current level, which is between 4.25% and 4.5%. This is good news for speculative risk assets such as bitcoin and cryptocurrency, which may spend much of this year correcting the losses of its predecessor.
Overall, the cryptocurrency market is showing signs of hope and there is potential for a sustained rally in 2023. With inflation easing and employment rising, as well as bond yields providing a reliable indicator of future interest rates, the outlook is much more positive than it has been in recent months. Therefore, investors should consider taking advantage of this optimistic market and consider investing in cryptocurrency in the near future.