What's the Upside After Bitcoin Topped $23,000?

During the Federal Reserve’s quiet period ahead of its meeting, stock markets surged higher. This gave Bitcoin (BTC-USD) a lift. In hindsight, fears of crypto platform closures peaked after the FTX bankruptcy on Nov. 11, 2022. Does Bitcoin have room to rise from here?

Between Nov. 2022 and Dec. 31, Bitcoin consolidated in the $16,500 to $18,000. Crypto investors replaced fearful speculation with stronger confidence in Bitcoin. When stock markets broke out to start the year, Bitcoin followed.

Bitcoin returning to $23,000 is different this time. Gold, which previously fell when Bitcoin rose, also increased in value. Russia and China accumulated massive amounts of gold in the last six months. The decoupling between gold and Bitcoin is a positive development. When gold rises, it does not compete with Bitcoin holdings.

Bitcoin’s strength is a boon for related coins, including Ethereum (ETH), Solana (SOL), and Ripple (XRP). Still, first-time investors in cryptocurrency should not venture beyond Bitcoin and Ethereum. SOL and XRP have a smaller market capitalization. As a result, they are more volatile.

Solana more than doubled in value since Dec. 29, 2022. This could set the crypto up for profit-taking.

Your Takeaway

Watch bitcoin prices first before considering other cryptocurrencies. Its direction will determine the movement of the lesser-followed currencies.