Why Is Crypto Bouncing Back?

The crypto market has seen a strong start to 2023, with Bitcoin (BTC) and Ether (ETH) experiencing significant growth. This resurgence is thought to be a result of the recent removal of bad actors and scams in the market, as well as increased interest in crypto driven by the COVID-19 pandemic. 

Macroeconomic conditions are thought to be contributing to the recent resurgence of crypto assets such as Bitcoin and Ether. In the US, this rally is seen as a sign that the country is on track to control inflation without negatively impacting job growth. 

The Federal Reserve is expected to ease its interest rate hikes in the coming months, as the market has fully priced in expectations of a gentle 0.25% hike in February, with the possibility of no hikes at all in the back half of the year. 

In Europe, the economic situation is complex with recent positive growth in manufacturing and services, but the European Central Bank plans to continue with more aggressive interest rate hikes in the coming months which may not lead to a soft landing like the US. 

China continues to face economic challenges with a housing crash, but crypto assets remain a viable option for investors seeking a safe haven. 

The crypto market is recovering due to a combination of factors, including a new beginning. The recent flush-out of bad actors and scams in the crypto market has created a fresh start for the sector, and the COVID-19 pandemic has led to increased education and enthusiasm for crypto. 

However, it is important to stay informed and educated about potential risks and opportunities in the crypto world. Improved macroeconomic conditions, including inflation and interest rates, are also believed to be driving the crypto resurgence. Stay up-to-date on the latest developments to make informed investment decisions.