Bitcoin’s bullish surge in January has helped the Nasdaq Crypto Index post its third-highest monthly gain, up 38%. The cryptocurrency market started the year on a bullish note, defying the market’s main bearish outlook. Bitcoin (BTC) and several altcoins hit fresh multi-month highs as inflation cooled.
NCI posted its third-highest monthly gain since its inception in February 2021. The crypto-asset index was launched by Brazilian asset manager Hashdex in partnership with the United States stock exchange. The index consists of eight cryptocurrencies: Bitcoin, Ether (ETH), Bitcoin Cash (BCH), Litecoin (LTC), Chainlink’s LINK, and Stellar’s Lumen (XLM), among a few others.
BTC has the highest weight in the index, with 69.8%, followed by ETH (27.08%). The rest of the other altcoins have a weight of less than 1%. Therefore, the subsequent rise of BTC and ETH, which increased by more than 35% in the last month, was also reflected in the index. Index weighting refers to the proportion of shares invested in a particular digital asset.
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With a prolonged crypto winter throughout 2022, Bitcoin ended last year at around $16,500 and most altcoins also tested their yearly lows towards the end of last year. Many market insiders had warned that bearish sentiment could continue into the new year as the FTX saga unfolds on a daily basis. However, the crypto market showed resilience and started the year on a bullish note, posting a double-digit gain across the market over the past month.
The Federal Open Market Committee press conference announced an interest rate increase of 25 basis points. US Federal Reserve Chairman Jerome Powell suggested that inflation had begun to cool in the world’s largest economy. The Fed raise did wonders for the crypto market, with BTC price briefly touching $24,000 and the crypto market cap rising 4%.
