The cryptocurrency market finished 2022 in a consolidation phase, and investors were left undecided as major cryptocurrencies failed to make decisive moves. However, the market is experiencing short-term buying pressure resulting in the retracement of key positions.
Will the crypto market take what it lost in 2023?
As of January 2, 2023, the global crypto market capitalization reached $807.17 billion, reversing the $800 billion level, but the value represents a decrease of approximately $4.27 billion from $811.16 billion on December 26. On the weekly chart, its market cap hit its lowest point on December 30 at $788.93 billion.
Global crypto market cap seven-day chart. Source: CoinMarketCap
It is worth noting that the crypto market briefly regained its $1 trillion market capitalization towards the end of 2022 after receiving support from positive news regarding the macroeconomic.
Moreover, the crypto market is still determined by leading assets such as Bitcoin (BTC) and Ethereum (ETH), the two major cryptocurrencies by market cap. Notably, according to press time, Bitcoin has a 39.9% market share, while Ethereum stands at 18.5%.
Ethereum (ETH) has also reclaimed its $1,200 position, trading at 1,216 with gains of around 1.64% in the last 24 hours. Although the market is in a consolidation phase, other notable cryptocurrencies that have posted gains in the last 24 hours include XRP with 1.5%, Dogecoin (DOGE) with 3% and Cardano (ADA) with 3%.
Bitcoin registers minor rally
Bitcoin is still trying to regain the $17,000 level after days of a sideways trading pattern. At press time, the flagship cryptocurrency was trading at $16,730, up nearly 1% in the last 24 hours.
Bitcoin one-day price chart. Source: Finbold
Similarly, the asset witnessed increased buying pressure resulting in a market capitalization of $322.08 billion as of January 2. In the last 24 hours, Bitcoin has attracted $3.38 billion in capital inflows.
Bitcoin one-day market cap chart. Source: CoinMarketCap
Bitcoin 2023 outlook
Although 2023 is still in its infancy, many industries have shared different views on how Bitcoin’s price action will play out. In line with this, David Kemmerer, CEO of crypto tax software CoinLedger, predicted that Bitcoin could correct further in the first half of the year.
In contrast, the pseudonymous crypto and stock market analyst Trend Rider noted that Bitcoin could enter an uptrend in the first half of 2023. Elsewhere, Stefan Ristic, a crypto miner who runs BitcoinMiningSoftware.com, also believes Bitcoin could go bearish in 2023, but he expects next year’s halving to act as a catalyst for a rally in 2025.
Disclaimer: The contents on this site should not be considered as investment advice. Investment is speculative. When investing, your capital is at risk.
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