Following a difficult 2022 marked by several crises, this year began with a lot more hope for cryptocurrency investors, who saw virtually the whole market climb in January, with Bitcoin recording its best monthly performance in over a year.
January Bitcoin’s Best Month Since…
Bitcoin finished the month with gains of more than 38%, its best January since 2013, when it gained 54,53%, and its best month since October 2021, when it gained 40%.
If this month’s FOMC meeting continues to pave the way for a less troublesome market, BTC could continue its amazing upward trend in February.
Among the top cryptos, bitcoin is also at the forefront of the best-performing crypto. Ethereum came close, gaining up to 31%, while BNB increased by 27%.
FOMC Meeting Updates
The price of the world’s largest cryptocurrency by market capitalization remained around the $23,000 level throughout the first day of this month’s FOMC meeting.
The asset began the day trading at around $23,280. Throughout the day, the anticipations regarding the meeting caused BTC to experience a highly volatile day in the market. The asset reached $23,194 at around 11:40 AM (EST) and then rebounded back to below the $23,000 margin.
The Federal Reserve is yet to announce its new interest rate policies, and as of right now, the results are not particularly positive for risky investments. According to a Morgan Stanley analysis, earnings are proving to be worse than expected, particularly in terms of margins.
On February first, the committee is expected to raise the American interest rates by 25 basis points. While the announcement of a new rise in interest may seem like terrible news, the raise is significantly less than the 75 points raised month after month during the second half of 2022.
For now, the crypto market will likely remain trading sideways until the de-facto announcement of the American interest rates.