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- Post crypto winter and multi-collapses, the industry sees positive regains.
- Bitcoin and Ethereum outperformed other assets in Q1 2023.
Q1 2023 has been rewarding for crypto as Bitcoin outperformed most assets; here’s a further analysis. After a harsh crypto winter and major collapses, including the FTX saga and Terra ecosystem, crippled the industry. In the first quarter of this year, the industry witnessed positive gains.
According to a newsletter shared with the media by IntotheBlock, Bitcoin and Ethereum registered similar gains in Q1 2021.
Bitcoin Outperform Analysis,
The market cap for Bitcoin hiked by 20% in March 2023; this added a 70% positive change in Q1 2023. Ethereum followed suit by gaining a quarterly hike of 49% and monthly raise of 9% in its market cap.
Analysts say this surpassing performance indicates an increasing attraction toward Bitcoin as a store of value. In comparison, gold prices surged from negative 0.3 to 0.9 by the quarter’s closing. 49% of growth registered by Ether is considerable compared to other crypto assets or stocks. However, it could not beat Bitcoin, probably due to the Silicon Valley fallout and Fed’s response.
Probable Causes for the Positivity
Stablecoin Tether also garnered positive sentiments with 20% quarterly and an impressive 12% monthly change in the USDT market cap. This was in the likelihood of investors shifting from USDC. It suffered greatly due to increased regulatory watch and when it lost its peg for Circle’s exposure with Silicon Valley Bank. The market cap of the USD Coin dropped by 23%, and quarterly figures suffered by 26%.
Multiple factors fuel the market sentiments for this great performance. While in 2022, the asset class attributed the failures to major implosions like FTX and Terra ecosystem collapse. Somehow the market sentiments changed with the advent of the new year, 2023.
Now after the end of the first quarter, the market is growing again despite the closure of three major banks. Community members pointed out that Bitcoin’s use case as a safe haven amid traditional finance turmoil really helped the cause, especially when three major banks with close ties with the crypto industry failed quickly.
Will the Positivity Continue?
Data further hints that the current market conditions are volatile, and the higher position achieved by BTC and ETH is due to buying influx. Currently, Bitcoin is trading at $28,404.92 with a drop of 0.21%, while Ethereum is at $1,821.66, suffering 0.29%. Analysts cite a swarm of buyers with around 623.8K BTC worth $17 billion and 8.4 million ETH worth $15.1 billion being bought.
The two major crypto assets should hit a key support level derived from previous buying patterns in the coming days. These levels for Bitcoin and Ethereum are $24,500 and $1,500, respectively.
Looking at the greener side, long-term investors are keeping up their assemblage. Bitcoin’s halving is years ahead, and Ethereum’s Shanghai upgrade is coming next month. Both these events are supposed to boost the price curve to the upper levels. All eyes are on Q2 2023, with major hopes.
Disclaimer:
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
