The general increase in risk appetite has proven to be healthy for cryptocurrencies, and most of these digital currencies have turned the corner since late 2022.
What’s Driving the Crypto Revival? The cryptocurrency space went through a violent phase in 2022, plagued by investor risk aversion and segment-specific issues such as the collapse of Luna (CRYPTO: LUNA) and the implosion of cryptocurrency exchanges FTX, whose original token is FTT (CRYPTO: FTT).
The depressed nature of most cryptos has likely triggered bargain-hunting related purchases.
Hopes of a Fed pause, which has been the driving force behind the stock market revival, appear to be working for cryptocurrencies as well. The central bank has been aggressive in the interest 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 can trigger economic growth to levels that can strengthen investors’ appetite for risk.
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Bitcoin’s Resurgence: Bitcoin (CRYPTO: BTC), which is the apex crypto with a market cap of $478.53 billion, was also not immune to the decline. After reaching a peak of $68,789.63 on November 10, 2021, the crypto went south and was down for most of 2022.
Last year alone, Bitcoin lost 64.3%, although it ended the year at a low of $15,599.05 reached on November 21, 2022. As 2023 began, buyers returned to the cryptocurrency market. Taking advantage of the change in sentiment, Bitcoin breached the $20,000 mark in mid-January.
On Sunday, the cryptocurrency rose above $25,000 for the first time since mid-August 2022. So far this year, Bitcoin has risen around 50%.
See also: How to trade cryptocurrency
Map via Benzinga Pro.
Doge on a sprint: Meme crypto Dogecoin (CRYPTO: DOGE), a crypto investor favorite, topped out well ahead of the rest of the cryptos.
While a few detest Doge as a joke coin with no intrinsic value, 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 US after Bitcoin and Ethereum (CRYPTO: ETH). The firm attributed the strong interest to the popularity the doge-themed currency gained in the wake of tweets and endorsements from high-profile figures such as Elon Muskmanaging director i Tesla.
After Musk’s “Saturday Night Live” appearance on May 7, Doge hit a 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: An investment of $1,000 in Bitcoin at Monday’s closing price of $24,829.15 will yield 0.040 Bitcoin. If the apex crypto retests the record, the same 0.040 Bitcoin will be worth approximately $2,770, a return of 177%.
Similarly, $1000 invested in Doge’s closing price of $0.088208 will yield 11337 Dogecoin. If the meme crypto were to scale the high in May 2021, 11,337 Dogecoin would be worth $8,362, a potential return of about 736%.
Price movements: At last check, Bitcoin was trading up 2.38% to $25,095.23 and Dogecoin was up 0.01% to $0.088179, according to data from Benzinga Pro.
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