Rally In Crypto Continues; Bitcoin Reclaims $20k
By Laxmikant Khanvilkar
Optimism across risky assets including cryptocurrencies continued unabated this week. Increased appetite for risky-assets following the Wednesday’s benign U.S. consumer price index data was the key element. The numbers will definitely provide a reason for Federal Reserve to slowdown rate hike pace during the Feb meet.
Bitcoin’s (BTC) 2023 surged yet again, with the most popular cryptocurrency is now above $20,000 for the first time since the FTX collapse in early November.
Also moving nicely higher is ether (ETH), ahead more than 20% year-to-date and threatening $1,500 for the first time since early November.
It seems the cryptocurrencies have woken up from their long slumber this week as risk appetite expands across a growing list of asset classes.
Not only is price reclaiming its prior-cycle highs from 2017, but momentum—as measured by the basic technical tool, the 14-day relative strength index (RSI), is registering its highest reading in two years. This is evidence that buyers are becoming increasingly aggressive, chart analysts have suggested.
Equity markets were also higher for the week, the S&P 500 gaining more than 2% as Q4 earnings season began and as U.S. inflation numbers – though remaining elevated – continued to move lower.
The largest cryptocurrency by market capitalization started the week near the $17,000 mark after hovering in the mid-$16,000 area since mid-December. Now at $20,250, bitcoin has gained more than 20% in the opening two weeks of this year. Still, the crypto – which topped $65,000 in Nov. 2021 – remains near the low end of a brutal bear market.
The global crypto market capitalization is currently at $984.18 billion, representing a 8.98% increase over the past 24 hours. The total crypto market volume for the same period stands at $68.12 billion, a 14.67% increase. DeFi constitutes 6.81% of the total 24-hour crypto market volume, amounting to $4.64 billion. Stablecoins, on the other hand, account for 90.13% of the total 24-hour crypto market volume, coming in at $61.39 billion. Bitcoin’s dominance has risen to 40.99%, with an increase of 0.85% since the last day.
Crypto-related stocks also benefited from the rally this week: Exchange Coinbase (COIN) was up 39% while bitcoin miner Marathon Digital Holdings (MARA) surged 76%.
You need to login in order to Like
