Ismael Santiago, PhD Professor in Finance and researcher at the University of Seville, spoke to the Cointelegraph en Español team about the current Bitcoin price, noting that last January has been the one with the best record since 2013 thanks to the bets that monetary tightening is remitting.
According to the academic from the University of Seville, the rebound from the deep fall of 2022 is part of a broader reactivation of risk appetite in the face of expectations that central banks “slow down” interest rate hikes and perhaps even cut borrowing costs later this year as high inflation moderates.
“Since the beginning of 2023, bitcoin is up around 40% and Ethereum more than 30%, a first-month gain second only to two previous occasions, when cryptocurrencies were in their infancy.”he stressed.
“Additionally, crypto assets like Fantom, Axie Infinity, and Decentraland have even doubled in value, part of a $280 billion rise in January in overall digital assets, CoinGecko figures show.”he added.
Likewise, Professor Ismael has stressed the behavior that the market capitalization has had, even exceeding one trillion dollars, barely being represented by around 60% of bitcoin and ether, according to Coinmarketcap.
On the other hand, in terms of fundamental analysis on chain, he pointed out that if the indicator ‘Daily Active addresses’ of the Bitcoin and Ethereum networks, you can find a network value of the first of 688,725,711,025 USD and of 266,369,532,100 USD in the second, which supposes, in his opinion, a relationship with the market capitalization of the respective cryptocurrency and of the value of the network (aforesaid amounts) of 0.64 in the first and 0.72 in the second.
In this sense, he highlighted that both are less than one, thus being able to be interpreted as a possible opportunity, due to the high correlation between both mentioned magnitudes. “These data, in addition to how the main macro figures in the United States evolve, should be complemented with a technical analysis of both cryptocurrencies, where bitcoin, for example, has serious resistance at USD 25,400 and support at USD 18,200”he mentioned.
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