Crypto Market Booms: Bitcoin, Ethereum and Other Risk-on Assets Up YTD

• Bitcoin and Ethereum have increased by over 35% since the start of the year, with other risk-on assets also experiencing a strong January.
• The euro, pound sterling, and Russian ruble are all up on DXY year-to-date.
• Nasdaq, S&P 500, Gold, and TLT are all up year to date.

The cryptocurrency market has had a strong start to the year, with Bitcoin and Ethereum increasing by over 37% and 35% respectively since the start of the year. This is indicative of a shift in financial markets expectations that interest rate policy could ease with inflation softening. This is in stark contrast to the market conditions experienced in 2022, when risk assets were crushed due to rate hikes increasing at the fastest pace ever.

The strong performance of Bitcoin and Ethereum, as well as other risk-on assets, has been further evidenced by the performance of major currencies such as the euro, pound sterling, and Russian ruble, which are all up on the DXY index year-to-date. Moreover, the Nasdaq, S&P 500, Gold, and TLT are all up year-to-date, further indicating the strength of the risk-on asset market.

The strong performance of risk-on assets so far in 2023 is an encouraging sign for the cryptocurrency market, as it suggests that investors and traders are confident in the asset class and are willing to take on more risk. With the market currently in a bull market, it could be a good time for investors and traders to capitalize on the current market sentiment and potentially benefit from the strong returns that cryptocurrencies have been offering.