Market update – 10 February
We hope to inform you again this year with our market and company updates. After a long period of a consolidating market, the market now seems to be moving again. Are there new opportunities and are you prepared for this?
We wish you pleasant reading!
The economic situation in January: a month full of crypto price increases!
The first month of 2023 was positive for the crypto market as Bitcoin (BTC) and Ethereum (ETH) posted significant gains. After falling briefly to a two-year low in November following the FTX bankruptcy filing, BTC prices surged more than 37% in January, ending the month above $22,900.
Ethereum prices also rose 30% in January to close the month at $1,577. Of the top 10 cryptocurrencies, by market capitalization, Solana (SOL) performed best in January with a gain of almost 150%, while XRP was the worst performer with a gain of 15%.
This strong performance in January provided much-needed relief to crypto investors, who have seen Bitcoin’s price stabilize over the past year.
A pattern of three consecutive years of positive growth followed by a year of poor performance seems to have formed, see graphic. Despite this pattern, the overall trend for Bitcoin has been up, with each downturn followed by even higher highs.
As adoption of cryptocurrencies continues to grow, many experts believe this trend of alternating growth and correction will continue, making it a valuable asset for those willing to hold on to it for the long run.
Rabobank first major bank in the Netherlands to raise interest on savings
In the banking sector, Rabobank was the first major bank to make the headlines, by raising the interest rate on savings from 0.25 to 0.5 percent. The change will be implemented on February 16 for all types of savings accounts and other major banks are expected to follow suit.
The higher interest rate is linked to the deposit rate of the European Central Bank (ECB), which raised rates twice in the past year, leading to lower inflation and a rise in savings and mortgage rates.
In short, January was a positive month for both the crypto market and the banking sector. The strong performance of Bitcoin and Ethereum has brought relief to crypto investors, while Rabobank’s rate hike is a sign of a growing economy. As we move forward into the rest of 2023, it will be interesting to see how the crypto market and banking sector continue to evolve and impact the overall economy.