© Reuters Bitcoin is set to see better days in the coming weeks and months, says CEO
The recent rise of more than 20% for , moving from $16,000 to $23,127 means that investors are once again renewing their interest and confidence in cryptocurrencies, something that comes after the latest data showed a 0.1% drop in the CPI in December 2022.
According to the CEO of Bitcoins-Rewards Lolli app Alex Adelman, the cryptocurrency should see better days in the coming weeks and months.
“This new downward trend in inflation suggests that this may slow price increases and ease monetary policy in the coming months, which will continue to increase investor confidence and interest in Bitcoin,” he said.
Bitcoin green lights after big drops
The recent continuous Bitcoin price hikes, which started on the 8th of this month and reached a 4-month high of $23,127, are far from over.
Before that, the cryptocurrency industry was nearing 2022, with the price of one bitcoin dropping to $16,291 in November 2022. The collapse of the FTX, the Fed’s interest rate hikes, and persistent inflation have worsened the cryptocurrency markets as investors pull out.
Last week’s rally also means markets are reeling from the anxiety caused by the FTX crash, Adelman said, as thousands of investors lost their money.
“It is likely that we will see Bitcoin continue its rally in the early part of 2023, especially as the FTX debacle highlights fundamental differences between Bitcoin and cryptocurrencies that are not safe stores of value,” he said.
“The adoption of Bitcoin by leading companies like Blackrock that we saw in 2022 has shown us that popular interest in Bitcoin is here to stay. As the price of Bitcoin soars, we will see new levels of adoption among retail and institutional investors this year.”
But not everyone is optimistic.
He is optimistic that Bitcoin will remain strong in the next month as more investors turn to it as a safer and more relevant store of value for the digital age.
However, many other experts have expressed the opposing view that price hikes can only be short-lived. CakeDEFI CEO Dr. Julian Hosp, for example, said last week that there is currently a lack of substance for a true bullish trend in cryptocurrency prices.
Hosp said that the current upward trend in cryptocurrency prices may only be the result of short-term factors and is characterized by, among other things, declining trading volumes, numerous failed dealing desks, market manipulation by some cryptocurrency firms, deflationary jumps, and suppressed cryptocurrency trading. Holiday liquidity and short selling, which can lead to lower prices in time.