Bitcoin Surpasses $21,000: Is the Crypto Bear Market Over?

[ad_1]

Bitcoin, the largest cryptocurrency by market cap, broke above the $21,000 mark on Saturday.

The move encouraged crypto investors who have been reeling from the collapse of several top crypto companies, including cryptocurrency exchange FTX.

This is the first time since November 8, 2022 that Bitcoin BTCUSD, up 4.91%, crossed $20,000 and followed 11 days of gains.

The rally hurt the bears who liquidated hundreds of millions of dollars in short positions. According to Coinglass, these totaled around $125 million for January 14 alone, with the period from January 11 bringing nearly $300 million in short liquidations.

The second largest Ether token ETHE, +0.36%, jumped 9.7%, and others such as Cardano ADAUSD, +1.07% and Dogecoin DOGEUSD, +4.77% also saw gains . Solana’s SOLUSD, +22.10%, climbed 35%.

The gains pushed the total cryptocurrency market capitalization above the $1 trillion mark for the first time since November, according to data from CoinGecko.

After falling from just above 67,500 to a low near 15,000, a 77% loss from top to bottom, Bitcoin spent about 13 months mostly sideways, until the buyers reappear this week.

See also: What’s behind Bitcoin’s big rally and why crypto traders are betting the worst is over

The current surge in the value of Bitcoin comes after the US Department of Labor released data showing that inflation is moderating with consumer prices up 6.5% in December from 7.1% in November. .

Crypto-assets performed well after the soft CPI print, suggesting crypto’s correlation to the macro won’t go away anytime soon, said Sean Farrell, head of digital asset strategy at Fundstrat. , to Bloomberg.

This week, the price action tracking is certainly encouraging, and barring any forced liquidations from struggling crypto firm DCG, there is a high likelihood that the absolute bottom will be reached for crypto prices.

[ad_2]