Despite the volatility of the global cryptocurrency market, things have been looking positive since the beginning of 2023 and the cryptocurrency is gaining momentum.
There are so many events that take place in the first quarters of the year that have a ripple effect on the cryptocurrency market. The regulatory force on the crypto industry in the US and some other crypto jurisdictions has not looked good for the industry and these actions have led to some companies disappearing from crypto sectors. It is clear that the US government is war against cryptocurrency by phasing out a system that has long been better people in the name of selling securities.
Same quarters, more crypto-friendly bank failed. In particular, the failure of the Silicon Valley bank that caused the Circle stablecoin USDC to break away from the dollar peg. This cause disagreement that aggressive rate hikes by the Fed are the cause of the problem for the banking system.
At the time, USDC depeg it triggered the fall in the crypto market.
However, a $300 billion Fed backstop to stem the contagion and decide to take it easy on the long campaign to raise interest rate has fueled the crypto market. The Fed's concern about the economy was the reason they rolled out such an amount, and since then the market has had a significant boost.
Currently, Bitcoin has hit a major milestone of $30,000 in less than 3 weeks of USDC correction, and the new cryptocurrency market cap is $1.283T
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Bitcoin's meteoric rise gives hope that the bull run is here and that alt-coin dominance may soon begin. But if the market continues to rise, which I believe bitcoin will reach $48,000 before correcting again, so if the price of your cryptocurrency holdings doubled tomorrow, what would you do?
I think most investors have started to take profits with Bitcoin's small rise, while some are still waiting for more profits or a rise in Alt coins. The truth is that the rise of Bitcoin drives other cryptocurrencies, but the crypto market is not predictable, sometimes the rise of Bitcoin may have a small effect on some altcoins, but still Bitcoin is the successor of the crypto market.
Doubling favorite cryptocurrency may not be the good reason for some people to sell their cryptocurrency, some investors may be waiting for 3x of their coin or more.
But if this is you, what would your next move be if the price of your favorite cryptocurrency doubles tomorrow?