Simon Peters, an analyst at eToro, issues a new commentary on the state of the crypto asset market in which he addresses the contexts in which Bitcoin and Ether digital assets are currently involved.
The commotion caused by Bitcoin’s uptrend in recent weeks continues its effects within the crypto market unabated.since the cryptocurrency has reached a maximum of 5 months in which it has reached levels that had not been seen since August 2022.
Lately the price of Bitcoin was hovering between 22 and 23 thousand dollars. However, last week after reaching USD 22,500 it began to rise gradually reaching the USD 23,500 mark according to the eToro platform.
For its part, Ether has been facing a week where variation has predominatedThis is based on the fact that at the beginning of last week the crypto asset was at USD 1,625 dollars, which did not last long since, in the middle of the week, it fell below USD 1,500 to later recover in moments of volatility and reposition itself. at $1,610.
Bitcoin continues to gain ground
Goldman Sachs, one of the largest investment banks, issued a note on Bitcoin in which it describes the cryptoactive as “one of the best performing assets of 2023 so far”, Peters expressed.
The note document was published on the social network Twitter, it shows how Bitcoin has managed to be above other important assets in the industry such as real estate, gold, emerging markets, among others. “Goldman Sachs, for its part, has not said whether it is increasing its exposure to the crypto asset.Simon specified.
On the eToro platform, Bitcoin since January 1 has risen by almost 43%. This reflects the good performance that the digital asset has had at the beginning of the year. Last year, specifically on January 9, Bitcoin reached its lowest mark, which was USD 15,523; if compared to now, this has had an increase of a little more than 50%.
While it’s hard to explain why Bitcoin is outperforming other asset classes, we’re nowhere near seeing an entirely new bull market. Similarly, Simon Peters explained that “Now that inflation and interest rate expectations are changing, most asset classes have halted the declines seen in 2022, as investors begin to think about “what’s next” for their portfolios beyond the shock of the 2022 rate hike”.
Ethereum’s on-chain behavior reflects positive signs
Ether so far in 2023 has also had its moments of rise and also, according to Beincrypto, the chain has been sending signals that show the good state in which it is. Proof of this are the token negotiations, the figures of the negotiations have been increasing daily, reaching the point of reaching the levels of July 2021. It is also reflected in the historical maximum reached in the metrics of the number of addresses of the network.
It is well known that last year the well-known Fusion took place, which because it occurred at a time when the market was in a volatile phase, the benefits that the network update was going to bring were not reflected in the price of the ETH. But among everything that has emerged during these first four weeks of the year, metrics like the token “are becoming deflationary,” Peters mentioned.
“According to Ultra Sound Money, Ether supply growth is currently deflationary, with the number of /tokens/ in circulation slowly declining.” Simon detailed. This situation benefits the price, especially when usage statistics are on the rise. The network is currently in a position where fewer tokens are doing the job of driving demand, and in parallel the price, higher.
Amazon has new digital services
The well-known trading platform, Amazon, could be on the verge of launching its own digital asset company in which NFTs will also have a place, Blockworks has reported. According to the information given, this new project could be including layer 1 blockchains, NFT applications, games based on blockchain technology, and exchange of digital assets.
“While Amazon is not late to the party itself, the crypto asset market has been ahead of these developments over the past two years. But the digital commerce giant could be well placed to capitalize on ideas already underway that have suffered during a year of volatile markets that have hampered development efforts.” said the eToro analyst.
Amazon is a company that has been in the market for years, which has allowed it to evolve with the environment and also generate enough resources to bet on an ecosystem, which, as a company, finds future profitability.
Although it has become a company with a strong presence in the digital market, Amazon’s true weight in terms of profit really comes from its web hosting platform, Amazon Web Services (AWS). With this, the insertion to Web3 becomes simpler and will also allow the company to venture and create a presence in new environments.
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