Bitcoin crypto continued to see upward progress in 2023, surpassing the $20,000 mark for the first time since the FTX crash in November. As the leading cryptocurrency by market capitalization, Bitcoin began the year near the $17,000 level, following a period of stability around $16,000 since December. Currently trading at $20,909, Bitcoin has grown more than 20% in the first two weeks of the year.
Many traders believe that the recent bullish behavior of the Bitcoin market is a sign that the crypto winter is over. Craig Erlam, a senior market analyst at Oanda, said that although $20,000 is considered a low point, it now serves as something that can indicate a market rally.
Bitcoin is Leading The Way
In addition to the increase of Bitcoin, Ether (ETH) is also seeing a significant increase, rising more than 20% annually and reaching $ 1,500 for the first time since November. . The rally in the cryptocurrency market also had a positive impact on crypto-related stocks, with Coinbase (COIN) up 39% and bitcoin miner Marathon Digital Holdings (MARA), which saw a 76% increase.
Traditional markets also saw a positive performance this week, with the S&P 500 rising more than 2% on the back of the early quarter and lower inflation in the United States, which has been high but reduced. Analysts say lower inflation and sharper annual declines in headlines and key figures contribute to overall optimism.
Nicholas Colas, co-founder of DataTrek Research, said that other factors such as China’s recovery, economic growth and corporate profits in the United States and real interest rates will also play a role in investors’ decisions. He added that although this does not guarantee a good year for risky assets, it shows that the market will be better than last year.
The Importance of This “Victory” for Crypto Bitcoin
Reaching $20,000 per Bitcoin is considered a milestone for the cryptocurrency market. In fact, it often reflects strong progress and new interest and confidence in the market from investors.
This, in turn, leads to an increase in Bitcoin and other cryptocurrencies, leading to an increase in their value. Also, reaching $20,000 can also attract more companies and traditional investors to the market. In general, this is seen as a good sign for the future progress and development of the cryptocurrency market.