Nasdaq Is boosted By Bitcoin As The NCI Index Gains 38% In January

Key Points:

• The Nasdaq Crypto Index saw its third-highest monthly gain in January, with a 38% increase, thanks to the bullish spike in Bitcoin.
• Nasdaq Crypto Index (NCI) registered its third-largest monthly rise. The Nasdaq stock exchange and Brazilian asset manager Hashdex collaborated to establish the crypto asset index.
• Bitcoin ended 2022 at over $16,500 after a protracted crypto winter, and most altcoins also tested their yearly lows. Due to the daily developments in the FTX drama, many market analysts had warned that the gloomy feeling would last into the new year.

The Nasdaq Crypto Index saw its third-highest monthly gain in January, with a 38% increase, thanks to the bullish spike in Bitcoin.

In defiance of the majority of gloomy market expectations, the cryptocurrency market began the year strongly bullish. A drop in inflation caused Bitcoin and a number of other altcoins to reach fresh multi-month highs.

Since it began in February 2021, the Nasdaq Crypto Index (NCI) registered its third-largest monthly rise. The Nasdaq stock exchange and Brazilian asset manager Hashdex collaborated to establish the crypto asset index. Eight cryptocurrencies are included in the index: Stellar, Bitcoin, Ether, Bitcoin Cash, Litecoin, and Chainlink, among others.

The index’s weighting is dominated by BTC (69.8%), followed by ETH (27.08%). The weight of the alternative cryptocurrencies is under 1%. As a result, the index also reflects the following rise of BTC and ETH, which have increased by nearly 35% over the past month. The percentage of stocks invested in a specific digital asset is referred to as the index weight.

Bitcoin ended 2022 at over $16,500 after a protracted crypto winter, and most altcoins also tested their yearly lows. Due to the daily developments in the FTX drama, many market analysts had warned that the gloomy feeling would last into the new year. However, the cryptocurrency market persevered and began the year on a positive note, with a double-digit rise over the previous month.

The Federal Open Market Committee press conference on February 1 announced a 25 basis point increase in interest rates. Jerome Powell, the chair of the US Federal Reserve, stated that the world’s largest economy has begun to see a slowdown in inflation. The Fed’s increase had a significant positive impact on the cryptocurrency market, with BTC briefly topping $24,000 and the market cap rising by 40%.

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