Bitcoin is once again trading over $20,000 after breaking out of a two-month trading range and printing a run of green daily candles.
In the last twenty-four hours, the leading cryptocurrency by market capitalization increased by almost 11 percent, reaching $21,000 in the early hours of January 14 before retreating to $20,817 at press time. In the previous week, the asset’s price increased by approximately 23%, adding $76.61 billion to its market capitalization.
Ether (ETH) followed closely after, gaining over 9% in the previous day to trade at a little over $1,536 at the time of publication. Ether has been gaining value because of the impending “Shanghai hard fork.” In addition to strengthening a variety of Ethereum network features, the March update is scheduled to enable validators to “unstake” and withdraw Ether that they have locked up in the beacon chain since 2020.
SOL, MATIC, DOGE, ADA, BNB, and XRP all gained around 71%, 21.92%, 18.58%, 20.76%, 13.36%, and 13.46%, respectively, as a result of the market-wide surge. According to statistics from Coinglass, the total amount of liquidations in the last 24 hours reached $731.63 million, with 135,136 short positions being eliminated.
Improved economic data have enticed investors back into the market, causing the current market surge. CPI statistics provided by the US Labor Department on Thursday indicated a small deceleration in inflation. In December, there was renewed optimism that the Federal Reserve would limit the rate of the interest rate increase.
“Another month with falling inflation, now lower than in November 2021. Month-to-month displaying even negative figures. Fuel for a recovery period of 2-4 months for the markets, but most likely a near-term drop for Bitcoin,” said Michal van de Poppe, CEO of Trading Platform Eightglobal and seasoned analyst.
The rebound is also an indication that investors have moved beyond the fear, uncertainty, and doubt generated by the collapse of Sam Bankman-Fried’s enterprise and other negative actors.
“Bitcoin has recovered $20,000 for the first time since before the FTX crash. “This symbolically demonstrates that neither SBF nor any other person can stop this movement,” tweeted crypto expert Will Clemente.
Fundamentally, this week’s supernova rise has been linked to huge crypto investors purchasing BTC as market sentiment for the leading cryptocurrency became bullish, notably in the United States.
“Increasing numbers of addresses holding between 100 and 1,000 $BTC was one of the leading indicators of this breakthrough in 2023. Typically, market-wide price increases occur when whales acquire Bitcoin, according to a tweet from the on-chain data provider Santiment.
Earlier yesterday, Ki Young Ju, co-founder and CEO of crypto analytics company Cryptoquant, also reported that an unidentified organization purchased $4 billion worth of BTC futures in three straight hours of market orders.
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