According to Cointelegraph, 2023 got off to a great start, with Bitcoin skyrocketing 40% in January. However, the good news is that the rising price of Bitcoin has also affected the green crypto market.
Mining revenue jumped $22.66 million in January, and crypto-related companies more than doubled. For a more detailed look into various sectors of the crypto industry, including venture capital, derivatives, decentralized finance (DeFi), regulation, and more, Cointelegraph Research is publishing its monthly Investor Insights report.
Compiled by leading experts on these topics, this monthly report is an invaluable tool for the current state of the blockchain industry. Check out the full news below!
Bitcoin Gains Momentum in Q1 of 2023
Bitcoin price is having its best month since October 2021, which is up almost 40%. After the Consumer Price Index indicated that inflation would slow in December 2022, crypto and stock prices took a hike.
When the price of BTC hit a multi-month high of $23,920 on January 29, 2023, all eyes were on the meeting of the Federal Open Market Committee or The Fed on February 1, 2023, which raised its benchmark interest rate by 25 basis points, citing easing but still high inflation. . BTC is experiencing a bit of volatility around the $23,000 level, indicating that the news was in the works.
When BTC gained bullish momentum in January, the centralized exchange’s inflows and outflows normalized. The largest monthly coin outflow in history occurred after the FTX collapse in November 2022, reaching 200,000 BTC per month across all exchanges.
According to Cointelegraph, net flow is now near neutral, with a decreasing trend of high outflows signaling investors’ return to the crypto market. BTC’s bullish month shot past its 50, 100 and 200 day moving averages (MA) for the first time in over a year.
Several altcoins, including Gala (GALA), Aptos (APT), Threshold (T), Decentraland (MANA), Solana (SOL), experienced more than 100% monthly growth in early 2023 as Bitcoin price started rising in early 2023. This was due to the dominance of extreme negative sentiment and oversaturated short positions at the end of 2022.
As of late January 2023, statistics from defillama.com show that Lido’s $7.92 billion TVL dominates the $46.56 billion TVL held in DeFi today. According to Bitcoin News, Lido’s decentralized finance (DeFi) staking protocol is currently the most dominant DeFi protocol, in terms of total locked value (TVL).