As the crypto market continues to evolve and mature, one question on the minds of many investors and traders is whether the bear market is truly over. The past year has been a difficult one for the financial sector as a whole, with the crypto market taking a big hit. In November of 2022, we saw the price of bitcoin drop as low as $15,000 following the collapse of centralized exchange FTX.
However, the start of the new year has brought a renewed sense of optimism to the digital assets space. As we have seen in the past, the crypto market tends to follow similar trends as the stock market, and the recent uptrend in traditional markets has also been reflected in the crypto space.
Currently, Bitcoin is trading around $23,000, and many market participants are asking what's next for the leading cryptocurrency. Opinions are split, with some expecting a correction while others believe the good times will continue and see bitcoin potentially reaching $30,000.
One notable development in the crypto market is the recent streak of daily green price candles for Bitcoin. The cryptocurrency nearly broke its record for the longest streak of daily gains earlier this month, with a 14-day consecutive run.
The realized price of Bitcoin is the average cost at which all BTC coins have been purchased. When the current market price is lower than the realized price, it is often considered an excellent time to buy. Bitcoin's market price is near its realized price, indicating a potential buying opportunity.
The mining of Bitcoins reached a historic peak on January 26th, with network hashing power surpassing previous records. 2023 has been a bullish year for the price of BTC, with an increase of over 40%. This has also led to increased profitability for miners who have started to come back online after a volatile 2022. Overall, the current market conditions are favorable for Bitcoin mining.
Cooling Inflation and Rate Hikes: What it Means for the Market and Cryptocurrency
The recent trend of inflation has begun to slow down, as seen in the Fed's decision to reduce rate hikes from 75bps to 50bps at the December FOMC meeting. Market speculation suggests a further 25bps hike may occur during the February FOMC meeting, with the possibility of additional rate hikes later in the year. Analysts are largely in agreement that this slowdown in rate hikes is a positive development.
Many investors anticipate that the CPI will continue to decline this year. It's worth noting that in the past, announcements regarding the CPI and interest rates have had a significant impact on the volatility of cryptocurrency prices, both before, during, and after the announcements.
What’s Happening in Crypto Land?
It is disappointing to see Porsche, a well-established brand, stumble in its entry into the world of NFTs. By pricing their digital replicas of the 911 model at a premium of .911 ETH, or close to $1500, they failed to consider the current market conditions and the shift in consumer preferences towards more accessible and affordable NFTs. Porsche decided to limit the supply of their NFT collection and abruptly halt the mint after receiving negative feedback from the community. This suggests a need for more understanding and preparation for the unique challenges of the Web 3 space. Brands looking to enter the world of NFTs should carefully consider the current market conditions and position their brand accordingly rather than relying on traditional reputation.
The official Twitter account of Robinhood was compromised by a cyber attacker who attempted to exploit the platform's 1.1 million followers. The hacker promoted an unverified and fraudulent token project called RBH, offering incentives for users to invest. Fortunately, the tweet was quickly removed, and the hacker's attempts to scam users were shut down. However, it was reported that the attackers made off with $7500.
Protecting Your Crypto Wealth
Cold storage refers to the practice of keeping your crypto offline, typically in a hardware wallet, to safeguard it from cyber threats such as hacking and theft. Unlike hot storage, where crypto is kept online and easily accessible, cold storage provides an added layer of security by maintaining assets offline and out of reach from malicious actors.
One of the critical advantages of cold storage for long-term holders is that it allows them to hold onto their assets for extended periods without needing constant monitoring. In addition, these holders often have no plans to sell in the near future, and cold storage gives them the peace of mind that their assets are safe and secure.
It's worth noting that cold storage is not the only option, some traders prefer to use exchanges such as Coinbase to trade altcoins and anything that they need to keep liquid, this way they can quickly access their assets while still maintaining a level of security through the exchange's security measures.
In summary, cold storage is becoming the go-to method for long-term cryptocurrency holders, providing a secure and reliable way to protect assets over time. However, whether you're a long-term holder or a trader, it's essential to carefully evaluate your storage options and find the best solution for your specific needs.
Best Crypto Storage Wallets for 2023
A hardware wallet is one of the best options when securing your cryptocurrency. These devices allow you to store your private keys offline, making it much more difficult for someone to access your funds without your knowledge. Three of my favorite hardware wallets on the market are the Ledger, Trezor, and Grid+.
Ledger
Thank you to all of our subscribers for your continued support, and I look forward to bringing you more updates on the crypto market in the coming weeks.
Not Financial Advice
Please note that all opinions in my newsletter are strictly my own and should not be considered financial advice. It is important to conduct your own research and make your own investment decisions. Always consult a qualified financial advisor before making any investment decisions.