- Cryptocurrencies for the most part have gone in the same direction as equities.
- Year-to-date, Bitcoin is down almost 18 percent.
Coins like Solana and Terra have seen significant increases in the past 24 hours. After a rough start to the year, bringing the market into the green for the month of February.
According to CoinMarketCap, the price of bitcoin has increased by 4% since yesterday. While the price of ether has risen by 9.9% since yesterday. After a grueling start to the year that cryptocurrency prices fell to their lowest levels since the middle of last year, the market is finally recovering. In January, Solana had a bottom of around $86 and was up 17.82% at $107. While Terra hit a low of about $43 and was up 11% at $52.
Investors Are Optimistic
Both Solana and Terra have lost 40% and 43% of their value since the beginning of the year. Year-to-date, Bitcoin is down almost 18 percent. The Fed-related worries that gripped markets last month prompted investors to flee riskier assets like equities and cryptocurrencies.
Rates will be hiked, and the Fed’s balance sheet will be reduced as part of an effort to limit inflation. This will eliminate liquidity that has supported the prices of a wide variety of financial assets.
Fed worries seem to be fading. Cryptocurrencies for the most part have gone in the same direction as equities even though Bitcoin has long been marketed as an investment or hedge against stock market volatility. Over the following days and weeks, 78 percent of JPMorgan’s polled customers said they wanted to raise their equity exposure to take advantage of the stock market’s rebound.
