Nigerian investors who purchased Bitcoin during the November slump are posting enormous gains in the online cryptocurrency market.
Data indicates that since its November lows, bitcoin has increased by at least $7,000 (p2p rate N5 million naira).
On Saturday afternoon, Bitcoin along with major market leaders Ethereum and Solana, surged to levels not seen since August 2022, giving this week’s cryptocurrency market recovery another shock.
The bulls’ struggle, which lasted for a few days, appears to be over, at least temporarily, as BTC had one of its most remarkable overnight price increases in recent memory. It increased it from under $21,000 to more than $23.2K.
Nigerians’ adoption of Bitcoin and other digital assets as shown by KuCoin, a well-known crypto exchange, titled “Into the Cryptoverse shows Nigeria stands up among the world; 35% of its citizens, or 33.4 million people, aged 18 to 60, either owned or traded bitcoin or another cryptocurrency in the previous six months.
According to Google Trends, Nigeria had the most searches for bitcoin in the first few months of 2021, the report adds.
Nigerians are only behind the United States in Bitcoin trade volume from January to August of last year, and at that time, they were more likely to google “Bitcoin” than people from any other nation.
Producer price index (PPI) data this week showed a larger-than-anticipated fall, indicating the U.S. Federal Reserve’s monetary hawkishness has been curbing inflation and boosting investors.
According to the CME FedWatch tool, traders presently predict that the Federal Open Market Committee (FOMC) will increase rates by merely 25 basis points (or 0.25 percentage points) at its February meeting, a slowdown from the 50 basis-point increases in the meeting in December.
Will the rally last? It appears that the current rally will last for longer than just a few weeks as a number of significant Crypto trading trends are pointing upward for the first time in many weeks.
Due to its effortless breakthrough of the $1,500 price level, Ethereum has experienced weekly gains of more than 8%.
Despite the Wednesday dip that took place in expectation of a significant announcement from U.S. federal prosecutors that many believed would target a key participant in the sector, Bitcoin and Ethereum have performed well.
With Saturday’s unexpected increase, Bitcoin’s seven-day gains now stand at 9%, with a 30% increase over the past 30 days. Bitcoin’s price has dropped by 65% from its record high of over $69K in November 2021, but recent advances indicate that the cryptocurrency market is recovering after a difficult 2022.
However, short sellers betting against the cryptocurrency market are facing difficulties and significant losses because, for the past 24 hours, 79,899 traders were liquidated, totaling $369.95 million.
The greatest single liquidation order, worth $4.53 million, was made on Bitmex.