Bitcoin USD/BTC has had a good start to the year and is well on his way to having his best january since 2013according to statistics.
When we started the new year, the value of Bitcoin was around $16,500, but in a matter of four weeks, it had already risen to over $23,500, resulting in a return on investment of around 41%.
This is particularly significant because, in the past, January has generally resulted in negative returns for Bitcoin investors.
Looking back at the month of January over the past 10 years, Bitcoin investors made negative returns on six of them, while the other four made positive double-digit gains.
The only exception was in 2013, when the returns were slightly above 44%.
Also read: Why the White House is urging Congress to increase the powers of cryptocurrency market regulators
Ethereal EUR/USDon the other hand, it has not been as successful this month.
The largest altcoin was trading in the $1,100-$1,200 range during the early days of January.
At the time of writing on Sunday, it was seen hovering around $1,648.
As a result, its ROI in 2023 was 34%, while in January 2021 and 2018 it posted profits in the 50-80% range.
Despite Ethereum's performance this month, experts predict that the trend may change in the near future.
This is due to the upcoming Shanghai update, which is scheduled for Q1 2023.
The community is gradually becoming optimistic as the update is expected to bring significant improvements to network scalability and security.
Furthermore, Ethereum recently re-entered the deflationary zone earlier this week, thanks to increased NFT sales.
Last year's EIP-1559 update introduced a base fee burning mechanism with every Ethereum transaction, which helped set the stage for Ethereum to become deflationary.
If the number of tokens burned continues to be greater than the number of tokens released, the price is likely to rise steadily as a result of declining availability.
From a technical perspective, Bitcoin also appears to be preparing to extend its rally.
According to Noel Saldanha, a technical analyst, a golden cross is about to materialize on the daily chart, which is a positive sign.
A golden cross is usually seen when a short-term average line crosses above a long-term average line, indicating bullish momentum.
Therefore, if the 50-day moving average (DMA) ends up breaking above the 200-DMA, another phase of price uptrend can be anticipated.
Next: New York Takes Big Leap Toward Cryptocurrency Adoption With New Bill
Photo: Shutterstock
