• The global economy has been continuing to weaken over the past year, with the US government hitting its debt ceiling and UK seeing a 57% spike in company insolvencies.
• Despite this, the crypto market has experienced a rise over the past month, with total capitalization jumping by 32%.
• Bitcoin itself has been reaching all-time highs recently, with investors pouring their capital into BTC and pushing its share of the market’s total cap as high as 44.82%.
Global Economy Weakened
It is no secret that the global economy has continued to weaken over the course of the past year. To this point, on Jan. 19, the United States government hit its “debt ceiling,” i.e. the total sum of money that the U.S. Treasury can borrow to fund its ongoing federal operations, leading to renewed concerns that more financial pain and economic slowdown could be incoming. Similarly, on the other side of the Atlantic, the United Kingdom has been struggling as well with 22,109 company insolvencies registered in 2022 — a 57% spike from prior year and highest rate since 2009 — and International Monetary Fund predicting recession for UK this year among G-7 nations.
Crypto Market Experienced Rise
Despite all this devastation, however, it seems like crypto market has caught some wind in its sail over last month with total capitalization surging from $828 billion to approximately $1.1 trillion — signaling a rise of nearly 32%. Bitcoin particularly pushed ahead after seemingly having stagnated around $16500 range for half of November & December before rising to $24000 on January 30th; pushing its share of market’s total cap as high as 44.82%, highest since June last year — suggesting investors have been limiting their exposure to altcoins and pouring their capital back into BTC instead.
$25K Next Stop?
After successfully defending price target of $22500 since Jan 20th; Bitcoin is currently showcasing 30-day profit ratio of around 40% which is mirrored by similar surge seen in stock markets after China eased COVID restrictions after 3 years’ worth pandemic control measures were put in place there; leaving many analysts divided if bull run is now finally in session despite many key indicators pointing towards same direction – thus raising questions about sustainability if true rally is indeed taking place or not?
American Institutional Investors Lead Rally
Data made available by Matrixport suggest 85% of all institutional investments are being done by American investors who are also said to account for more than two thirds (68%) when it comes to trading volume growth seen within sector during first quarter 2021 compared to 2020 Q4 figures – showing how much influence these entities have had when it comes driving asset prices higher ever since Wall Street started flooding sector with capital late last year onwards until now where BTC alone saw +20x increase in overall value while altcoins followed suit too albeit at slower pace due largely because they aren’t directly linked/backed/influenced by major US players such as Goldman Sachs or JPMorgan Chase who already have huge presence when it comes investing into cryptocurrencies through dedicated funds like Grayscale Investments etcetera thus giving them leg up against competition coming elsewhere right now despite potential risks associated long term investment strategies adopted by same companies mentioned above going forward…
In conclusion, while there are still questions remaining regarding whether current cryptocurrency rally can be sustained or not; one thing is certain: that institutional investors from USA are playing major role when it comes driving up asset prices across board regardless what type assets we’re talking about here – stocks/bonds/commodities etcetera alongside digital currencies like Bitcoin which recently reached new all time high near $25k proving just how influential these entities really are even during times uncertainty such as these where traditional markets may continue struggle but alternative investments seem promising thanks mostly because Americans willing invest heavily into them despite potential risks involved due lack regulations governing sector worldwide at present moment so only time will tell what future holds when it comes cryptocurrencies given fact situation could drastically change any moment due sudden events beyond our control happening anywhere anytime soon enough anyway!