January Performance
In January, Bitcoin briefly surged to new 52-week highs near $49,000 on the day the U.S. Securities and Exchange Commission (SEC) approved spot bitcoin exchange-traded funds (ETFs). However, Bitcoin’s momentum waned in the second half of the month, and it dropped more than 1% overall, closing the month around $42,000.
Ethereum (ETH) also experienced a 3% decline, ending January at approximately $2,245.
Among the top 10 altcoins by market capitalization, Tron (TRX) performed the best with a 5% gain, while Cardano lagged but remained up nearly 67% over the past three months.
2023 Performance
In 2023, Bitcoin achieved its best annual performance since 2020, gaining 156%.
Ethereum prices also rose significantly, with a 91% increase during the same period.
Total Market Capitalization
The global cryptocurrency market’s total market capitalization peaked at over $2.9 trillion in November 2021.
However, it faced challenges during 2022’s “crypto winter” and dipped significantly.
As of now, the market cap has rebounded to $1.6 trillion heading into February 2024.
Spot Bitcoin ETFs
On January 10, the SEC finally approved 11 spot bitcoin ETFs, marking a significant milestone.
These ETFs allow investors to directly invest in Bitcoin itself, rather than just Bitcoin futures contracts.
Notable spot ETFs include:
ARK 21Shares Bitcoin ETF
Bitwise Bitcoin ETP Trust
Fidelity Wise Origin Bitcoin Trust
Franklin Bitcoin ETF
Grayscale Bitcoin Trust
Outlook for the Next Few Months
While I don’t have a crystal ball, here are some factors to consider
Market Sentiment: Keep an eye on investor sentiment, as it often drives short-term price movements.
Regulatory Developments: Any further regulatory approvals or changes can impact the market.
Macro Trends: Global economic conditions and geopolitical events may influence crypto prices.
Technical Analysis: Monitor key support and resistance levels for Bitcoin and other major coins.
Altcoin Performance must also considered as a base prce