Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      World Bank set to back South Africa’s big energy grid roll-out

      20 June 2025

      The algorithm will sing now: why musicians should be worried about AI

      20 June 2025

      Sita hits back at critics, promises faster, automated procurement

      20 June 2025

      The transatlantic race to create the first television

      20 June 2025

      Listed: All the MVNOs in South Africa – 2025 edition

      19 June 2025
    • World

      Watch | Starship rocket explodes in setback to Musk’s Mars mission

      19 June 2025

      Trump Mobile dials into politics, profit and patriarchy

      17 June 2025

      Samsung plots health data hub to link users and doctors in real time

      17 June 2025

      Beijing’s chip champions blacklisted by Taiwan

      16 June 2025

      China is behind in AI chips – but for how much longer?

      13 June 2025
    • In-depth

      Meta bets $72-billion on AI – and investors love it

      17 June 2025

      MultiChoice may unbundle SuperSport from DStv

      12 June 2025

      Grok promised bias-free chat. Then came the edits

      2 June 2025

      Digital fortress: We go inside JB5, Teraco’s giant new AI-ready data centre

      30 May 2025

      Sam Altman and Jony Ive’s big bet to out-Apple Apple

      22 May 2025
    • TCS

      TCS+ | AfriGIS’s Helen Hulett on how tech can help resolve South Africa’s water crisis

      18 June 2025

      TechCentral Nexus S0E2: South Africa’s digital battlefield

      16 June 2025

      TechCentral Nexus S0E1: Starlink, BEE and a new leader at Vodacom

      8 June 2025

      TCS+ | The future of mobile money, with MTN’s Kagiso Mothibi

      6 June 2025

      TCS+ | AI is more than hype: Workday execs unpack real human impact

      4 June 2025
    • Opinion

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025

      Singapore soared – why can’t we? Lessons South Africa refuses to learn

      13 June 2025

      Beyond the box: why IT distribution depends on real partnerships

      2 June 2025

      South Africa’s next crisis? Being offline in an AI-driven world

      2 June 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Cryptocurrencies » Big money edges back into crypto

    Big money edges back into crypto

    Big investors are dipping their toes into crypto waters again after a bumper month for bitcoin.
    By Agency Staff31 January 2023
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    Big investors are dipping their toes into crypto waters again after a bumper month for bitcoin.

    Digital asset investment products, often favoured by institutional investors, saw inflows of over US$117-million last week, the biggest weekly increase since last July, according to data from asset manager CoinShares.

    Bitcoin was far and away the biggest draw, with funds tracking it responsible for $116-million of that. Crypto funds’ total assets under management have risen to $28-billion, up 43% from lows plumbed in November as the collapse of the FTX exchange sent shockwaves through the industry.

    Bitcoin has soared nearly 40% in January, closing in on its best monthly performance since October 2021

    “For the most part, people are more confident than they were a month ago,” said Joseph Edwards, investment adviser at Enigma Securities.

    Bitcoin, the original cryptocurrency, has soared nearly 40% in January, closing in on its best monthly performance since October 2021 and its second-best January in the past 10 years.

    The rally, combined with a possibly brightening macro picture, has some investors hoping the long crypto winter might finally be verging on spring. Many investors expect the US Federal Reserve to hike its benchmark rates by 0.25% this week — the smallest rise since their tightening cycle began last year.

    “If peak inflation is indeed behind us for now, then long-term interest rates may move lower as we approach the end of the inflation-focused rate-hiking cycle,” analysts at Fidelity Digital Assets wrote. “This could signal positive momentum on the macro front for assets such as bitcoin.”

    Volumes

    Activity in the options market indicated traders were rushing to place bets just after the Fed meeting, a sign of the importance the market is placing on it, crypto liquidity provider B2C2 said.

    Crypto trading volumes are also rising, according to CoinShares, with average weekly volumes up 11%, indicating traders are returning after months of dampened activity.

    Still, crypto’s not out of the woods by a long stretch, and the Fed could still spoil the party if they take a more hawkish tone this week.

    Crypto data platform Coinglass’s bitcoin Fear & Greed index — where 0 indicates extreme fear and 100 extreme greed — is hovering at 61, the highest level since mid-November 2021, just after bitcoin began retreating from its peak. “We might see a drop-off next week or two; how deep that drop goes is questionable,” Edwards said.

    Nonetheless, there are also other signs that the end of the bear market might be nigh, according to analysts at exchange Bitfinex. They said shorter-term investors were selling their bitcoin at a profit, while longer-term “hodlers” were still sticking with their coin and not contributing to selling pressure.

    “The realised profit and loss for the entire market has been recorded as positive in January 2023 for the first time since April 2022, a continuation of this trend would signal the final stages of a bear market,” they said.

    Additionally, bitcoin’s “dominance” or share of the total crypto market has hovered around 41% this month, levels not seen since last July. Analysts at Citi said this mimicked a similar jump in bitcoin dominance in April 2019, when a bitcoin rally marked a crypto market bottom.

    Other market watchers said stocks, another relatively risky asset class, would likely drive bitcoin prices in the next week, particularly the performance of interest rate-sensitive tech stocks.

    Read: Bitcoin set for historic January climb

    Bitcoin’s correlation with the Nasdaq is at 0.94, the highest since May 2022, where a measure of 1 indicates the two are moving in lockstep.

    Late in November, bitcoin broke its bonds with stocks and traded with a negative correlation of 0.7.

    Read: Bitcoin is back with a bonk

    “It’s possible that bitcoin could reach the next resistance level of $25 200 in the coming weeks,” said Rachel Lin, CEO of exchange Synfutures. “Even if bitcoin ends up down again, there is a decent chance it will achieve a higher low on the larger timeframe.”  — Lisa Pauline Mattackal, Medha Singh and Alun John, (c) 2023 Reuters

    Get TechCentral’s daily newsletter



    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleVodacom weathers tough economy
    Next Article Audi expands South African EV charging network

    Related Posts

    World Bank set to back South Africa’s big energy grid roll-out

    20 June 2025

    The algorithm will sing now: why musicians should be worried about AI

    20 June 2025

    Sita hits back at critics, promises faster, automated procurement

    20 June 2025
    Company News

    Making IT happen: how Trade Link gears up to enable SA retail strategies

    20 June 2025

    Why parents choose CambriLearn for online education

    19 June 2025

    Disrupt first, ask questions later – the uncomfortable truth about incident response

    18 June 2025
    Opinion

    South Africa pioneered drone laws a decade ago – now it must catch up

    17 June 2025

    AI and the future of ICT distribution

    16 June 2025

    Singapore soared – why can’t we? Lessons South Africa refuses to learn

    13 June 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.