Bitcoin records 2.5% returns in 24 hours
Bitcoin showed some positive moves ever since the new year has come, but now it looks like some withdraws happening.
US stock markets recorded a remarkable recovery last week as inflation concerns eased after the slowdown in December's CPI figure. Friday's earnings releases from banks such as JP Morgan reassured the market that the likelihood of a recession had diminished. The cryptocurrency market has reached $1 trillion for the first time since the collapse of FTX. Bitcoin, the most moving cryptocurrency today, posted a 2.5% return in 24 hours, leading to the broader cryptocurrency rebound. The largest cryptocurrency by market capitalization emerged as the best performer among the top 10 cryptocurrencies last week, possibly due to improved macro conditions and short liquidations.
Bitcoin records 2.5% returns in 24 hours
Bitcoin's market cap outpaced Tesla and Meta after a 7-day 24.5% return last week, when FTX recouped nearly all losses following its collapse. Bitcoin's performance is mainly driven by improved macroeconomic indicators, inflation peaking, and solid gains from banks over the past week. While the market is betting on a 'Fed Pivot' soon, a loose monetary policy has historically been conducive to Bitcoin being considered 'digital gold'. The recent price increase has also led to an increase in active addresses on the Bitcoin network, indicating a resurgence in investors. However, it is important to note that an improved fundamental does not usually lead to such a sudden price increase. Instead, massive liquidation of accumulated short positions typically triggers price recovery and adds fuel.
Interestingly, weekly adjusted Bitcoin mining difficulties increased by 10.26% due to increased hashrate. Miners may have reinstalled their mining rigs last week as the hash price bottomed out after Bitcoin's price surge.
Over the weekend, Metamask announced that users can now interact with their latest feature, Metamask Staking. This feature aims to make staking simple and transparent by allowing users to interact directly with liquid staking providers, Lido and Rocket Pool. ConsenSys, the company behind Metamask, has announced that with Metamask Staking, customers can convert their stETH and rETH back to ETH. This will likely be added to the Metamask Portfolio in due time as the Ethereum Shanghai upgrade approaches.
