Crypto Makes Impressive Recovery in Early 2023, but Experts Hesitate to Declare Victory

Based on the first weeks of 2023, it appears that rumors of crypto’s death were greatly exaggerated. In addition to a major return from Bitcoin, with a 26% gain posted by mid-January for a value above $20,000, Ether and other popular digital assets have surged, with CoinGecko declaring that the overall global crypto market has once again surpassed $1 trillion.

And the success has not been limited to the currencies that have become major names among investors: a new crypto token called “Bonk” has rocketed in popularity since last December, reaching a market cap of $205 million not long after its public launch. Similar meme tokens such as doge and Shiba Inu have enjoyed similar rises in value over the last several weeks.

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Representative of the broader view on cryptocurrency’s recent success, Co-Founder of digital asset securities trading platform Prometheum Aaron Kaplan was cautiously optimistic about crypto’s long-term prospects. In a recent interview, Kaplan said, “It's too early to declare a definitive reversal for the crypto market despite the recent strength we've seen of late. If interest rate increases are below what the market expects, then risk assets will benefit and crypto prices will likely continue the uptrend, but there's just too much uncertainty right now.”