Bitcoin Retraces $20,000, Leading As Broad Crypto Rally Continues

Bitcoin Retraces $20,000, Leading As Broad Crypto Rally Continues

Bitcoin (BTC)’s 2023 rally continues, with the crypto now above $20,000 for the first time since the FTX crash in early November.

The largest cryptocurrency by market cap started the week near the $17,000 mark after hovering around $16,000 since mid-December. Currently at $20,250, bitcoin has gained more than 20% in the first two weeks of this year. Despite that, the crypto – which reached $65,000 in November 2021 – is still close to the bottom of the bear market.

Of course, $20,000 is seen as outrageous, but now may represent a sign of renewal, said Craig Erlam, a market analyst and marketer at Oanda.

Ether (ETH) is also doing well, up more than 20% annually and threatening $1,500 for the first time since early November.

The CoinDesk Market Index (CMI) rose 14% for the week.
Crypto-related stocks also benefited from the session this week: Exchange Coinbase (COIN) rose 39% while bitcoin miner Marathon Digital Holdings (MARA) jumped 76%.

Traditional markets are also higher for the week, with the S&P 500 gaining more than 2% at the start of the fourth quarter and inflation rates in the United States – although they are still high – remain at – down. “The optimism was fueled by the first monthly price drop in two and a half years and a significant year-over-year decline in headline and headline numbers,” Erlam wrote.

Nicholas Colas, the founder of the research firm dataTrek Research, wrote in a note that the US Federal Reserve’s policy is still important, but “other issues such as China’s recovery, the pace of economic and industrial growth in the United States and well. a real shock value for investors.”

“There is no guarantee that 2023 will be a good year for risk assets, but it means it will be better than last year,” Colas said.

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