btc-rally-sees-it-flip-visa-for-the-third-time

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The incredible recovery of the crypto market has benefited Bitcoin (BTC) in particular, with the leading cryptocurrency’s market cap recently surpassing that of payment processor VISA. A Never-Ending Tussle The year 2022 was challenging for the crypto space .With the traditional economy under pressure and a spate of bankruptcies and company impositions, coin prices took…

The incredible recovery of the crypto market has benefited Bitcoin (BTC) in particular, with the leading cryptocurrency’s market cap recently surpassing that of payment processor VISA.

A Never-Ending Tussle The year 2022 was challenging for the crypto space .With the traditional economy under pressure and a spate of bankruptcies and company impositions, coin prices took a significant hit as investors sought safer assets to back.However, it was expected that 2023 would be a much different year, with digital assets, in particular, looking to reclaim the highs they had lost.

Despite a slow start, crypto is showing signs of living up to the promise of 2023.The leading digital asset, Bitcoin, has gained 48% in value year-to-date.The asset’s market cap has also surpassed $470 billion , implying that it has again toppled the valuation of VISA, the world’s largest payment processor by market value.

Records show that this is the third time Bitcoin will flip VISA in terms of market valuation.

The first occurrence was in December 2020, when Bitcoin’s price attained the $25,000 mark, resulting in a surge of investors entering the space – one that would eventually push the leading asset’s nominal value to $63,100.

However, after a short bear run in the middle of the year, VISA regained its lead over Bitcoin between June and October 2022.Nevertheless, the Bitcoin rally remained strong, and the asset briefly crossed VISA again on October 1, 2022.

Unsurprisingly, VISA reclaimed the lead throughout 2022, as the crypto market experienced one of its most severe bearish periods yet.

Bear Market Over? Interestingly, it appears that the same factors that caused Bitcoin’s price to plunge so hard last year are also responsible for its current gains.Following the United States Federal Reserve’s efforts to curb inflation and keep spending low, the traditional economy has grown strongly.

Current price surges began with a Consumer Price Index (CPI) that met analysts’ expectations.The United States government confirmed last week that inflation eased for the seventh month in a row, with the CPI print reading a total of 6.4% increase over the past 12 months – slightly down than the annual 6.5% rate seen in December and significantly lower than the 40-year high of 9.1% reported in June 2022.

All in all, inflation rose by 0.5% for the month, while core inflation increased by 0.4%.This is higher than investors expected, although it is still on track as the White House seeks to maintain a steady level of inflation going forward.

Given the progress made thus far in curbing inflation, as well as continued hopes that the Federal Reserve will eventually cut interest rate hikes, many investors have become more optimistic about the prospects of the crypto space in the near future.

This week, investors would be on the lookout for considerably fewer macro triggers, mostly data on personal spending in the form of the Personal Consumption Expenditures (PCE) Index.However, the event on most analysts’ radar will be the release of minutes from this month’s Federal Open Market Committee (FOMC) meeting.

Analysts expect the Fed to initiate discussions about a future rate hike moratorium.

However, considering inflation rose higher than expected last month, nothing is promised..

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