Bitcoin, the world’s largest cryptocurrency in terms of market capitalization, has once again proven its dominance in the crypto market by outperforming Ethereum and other digital assets in terms of growth in January 2023.
Despite a harsh 2022, in which it closed the year trading at $16,537.4, a 76% fall from its $68,789.63 high in November 2021, Bitcoin has made a strong comeback in the new year. In just 24 days, Bitcoin has witnessed a 39% gain, soaring from its previous price of below $17,000 to around $23,000. This is the first time since August 2022 that the crypto asset has reached this price mark.
Over the weekend, Bitcoin even attempted to break above the $23,000 price level and saw a 9% surge and $2,000 price spike within 24 hours. The reason behind this surge in price is being speculated, with some industry watchers attributing it to the purchasing activities of whales or large-tier wallets over the past couple of weeks.
Unfortunately, Ethereum, the second-largest crypto asset by market capitalization, saw a growth of only around 26% over the same period. In terms of weekly inflows, Bitcoin saw $5.7 million and $9.2 million month-to-date while Ethereum saw $4.2 million weekly inflows and $6.8 million month-to-date.
Several analysts believe that this current surge in the price of Bitcoin is just the beginning and expect a breakthrough to happen next month that could see its price spike to $30,000 levels and close the year at a $42,000 price level.
Despite this strong performance by Bitcoin, it is important to note that the crypto market is highly volatile and can change rapidly. As always, it is crucial for investors to conduct their own research and invest with caution.
In conclusion, Bitcoin has once again solidified its position as the king of cryptocurrencies by outperforming Ethereum and other digital assets in January 2023. With the crypto market constantly evolving, it will be interesting to see how Bitcoin and other cryptocurrencies perform in the coming months.