bitcoin
BTC
cursors down
$22,866
The January rally helped the Nasdaq Crypto Index post its third-highest monthly gain, with a gain of 38%. The cryptocurrency market started the year bullish, defying major bear market expectations. Bitcoin and a number of altcoins have touched new multi-month highs as inflation slows.
Monthly price chart for the Nasdaq Crypto Index Source: Google
The Nasdaq Crypto Index (NCI) posted its third largest monthly gain since its inception in February 2021. The crypto-asset index was launched by Brazilian asset manager Hashdex in partnership with Nasdaq. The index consists of eight cryptocurrencies: Bitcoin and Ether
ETH
cursors down
$1,630
Bitcoin Cash
Biosafety Clearing-House
cursors down
$133
Litecoin
LTC
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$96.46
Link chain
connection
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$6.96
and Stellar
xlm
cursors down
$0.090
, among a few others.
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BTC has the highest weight in the index (69.8%), followed by ETH (27.08%). Other digital currencies weigh less than 1%. Thus, the subsequent rally of BTC and ETH, which have jumped more than 35% in the past month, is also reflected in the index. The weight of the index indicates the share of shares invested in a particular digital asset.
Related: Bitcoin bulls must reclaim these two levels as the ‘death cross’ still looms large
With a prolonged crypto winter throughout 2022, Bitcoin finished the year around $16,500, with most altcoins also testing yearly lows. Many market experts have warned that the bearish sentiment may continue into the new year due to the FTX saga unfolding daily. However, the cryptocurrency market showed resilience and started the year on an uptrend, posting double-digit gains for the past month.
On February 1, the Federal Open Market Committee press conference announced a 25 basis point rate hike. The Chairman of the United States Federal Reserve, Jerome Powell, has suggested that inflation has begun to ease in the world’s largest economy. The Fed hike worked wonders for the crypto market, as BTC briefly touched $24,000 and the cryptocurrency’s market cap surged 4%.
