Quarter II-2023 Will Be An Important Momentum for the Crypto Market

Bitcoin (Unsplash)

JAKARTA - The crypto market got off to a strong start in 2023. Compared to the performance in 2022 which ended at USD 829 billion, this year the total market capitalization reached USD 1.2 trillion.

Specifically, Bitcoin (BTC) has emerged as the best performing asset class in the first quarter of 2023, with gains of around 70 percent. That makes Bitcoin the best investment asset since the first quarter of 2021, compared to stocks and gold.

Tokocrypto External Trader, Fyqieh Fachrur, sees the strong recovery of the crypto market in the first quarter marking a big change compared to the bear market situation in 2022.

Trading volumes saw an increase in January 2023, when the market started to rally. It then spiked briefly in early March, due to increased volatility from the banking crisis.

"The stability of the Bitcoin price in the first quarter of 2023 creates a narrative that is a golden opportunity for investors who can identify and look for crypto projects with great potential. Bitcoin has managed to maintain its positive momentum, showing greater resilience compared to the previous year," said Fyqieh in a written statement. received in Jakarta.

With a significant increase that occurred in the first quarter of 2023, the crypto market is showing positive signs for the second quarter.

However, there are some external factors to watch out for, which could have a significant impact on the crypto market such as the policies of the Fed and the upcoming May Consumer price index (CPI) data.

"Quarter II will be a key moment to determine whether the crypto market can sustain the price increases experienced in quarter I. The main question for Q2 will be the Fed's monetary policy. Many investors hope to at least provide stability where BTC does not experience too sharp a correction," Fyqieh said.

As of Friday, April 28.82 percent of market participants agreed that the Fed would increase interest rates by 0.25 percent in May. The Fed is expected to continue raising interest rates despite concerns about a recession, but needs strong evidence that inflation is under control before stopping rate hikes.