Why are the cryptocurrencies rising?

With the number of followers increasing day by day, the crypto money market is one of the most important topics of the finance agenda.

Why are the cryptocurrencies rising?
The cryptocurrencies have been rising with the new year

The crypto money market, which has been in a decline since November of 2021 started the new year with hope. The crypto money market, which has been trying to compensate for the losses with its stable momentum since the first day of 2023, almost did not decrease throughout January. After an unpleasant year, the leading cryptocurrency Bitcoin, which caught a longed rise and yielded more than 40% in about three weeks, allowed the whole industry to breathe.

Along with Bitcoin, Ethereum also provided a return of over 40%. While the movements experienced since the beginning of the year in many altcoins exceeded 100%, cryptocurrencies became the most profitable investment tool in January.

So what has changed?

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Well, what happened in the crypto money market, which has survived many shocks and crises throughout 2022, and has experienced very different pricing from its old days, has opened a new page as of 2023. First of all, there is more than one reason for the rally since the beginning of the year and it is useful to look at the overall picture. Although the cryptocurrency market has its own ecosystem and technological infrastructure, it is a part of the global financial system. We can say that the crypto money market is progressing in parallel with the parameters indexed to the US economy. As the American economy gets better, positive signals from there reflect positively on the markets. Interest rates and recession expectations for 2023 in the USA improved slightly with the latest inflation and growth indicators. The fact that the US economy is not as bad as expected, the sharp recession expectations have been eroded and the inflation trend has weakened the FED's expectations. The FED, which is expected to reduce the rate of increase in interest rates to 25 basis points in February, is expected to end the interest rate increase cycle as of March.

With the positive signals from FTX and the bottom reaction purchases, the crypto money market managed to get the support of the global markets in this period. Thus, Bitcoin, which reached its highest level in 4 months, rose to $ 23,400.

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