Crypto Market Soars as Bitcoin Breaks Through US$25K Price Ceiling
Bitcoin (BTC-USD) surged past the US$25,000 mark for the first time since June 2022, extending its year-to-date gains to just under 50%. Ethereum (ETH-USD) gained 8.6% to $1.71K, but still has a lot of ground to cover to reach its respective November 2021 highs.
Mike Novogratz, CEO of Galaxy Digital Holdings, believes there’s a chance Bitcoin could return to $30,000 or above before the end of March. This is a far cry from the $500,000 he once predicted for the digital currency, but still almost 25% above its current price.
In the past 24 hours, the total crypto market capitalization has increased by 6.9%, reaching its highest point since August, at US$1.10 trillion. Total trading volume also increased by 7.9%, amounting to US$63.61 billion. Flows into Bitcoin have been attributed to its classification as a “commodity” by the Securities and Exchange Commission (SEC) chair, which has pushed its market domination higher.
The Consumer Price Index (CPI) report released on Tuesday showed prices rose 0.5% in January from the previous month, or slightly higher than the 0.4% forecast by economists. This increase year-on-year came in at 6.4%, according to the U.S. Labor Department.
The market optimism is further compounded by the fact that the price of Bitcoin has broken through the US$24,000 price ceiling for the first time in two weeks. Investors have liquidated almost US$70 million of mostly short-position bets, according to data aggregator GlassNode, while Ether and all other top 10 non-stablecoin cryptocurrencies have gained ground.
Ultimately, there are increasing signs that the market bottomed last November and has turned bullish, with Bitcoin now up 48% year-to-date to trade at just under US$25,000. The rallying cry for the cryptocurrency industry is gaining momentum, as investors grow more confident that a widely predicted recession might not actually happen.
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1. “Bitcoin pops to highest in six months as regulatory crackdown fears ebb” Seeking Alpha, 16 Feb. 2023, https://seekingalpha.com/news/3937311-bitcoin-pops-to-highest-in-six-months-as-regulatory-crackdown-fears-ebb
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6. “Bitcoin breaks $25K for first time since mid-2022, some hail thaw of crypto winter” Fortune, 16 Feb. 2023, https://fortune.com/crypto/2023/02/16/bitcoin-ethereum-price-rally-0216-ordinals-inflation
7. “Bitcoin breaches US$24,000 to reach highest price since August as short sellers liquidated” Yahoo Life, 16 Feb. 2023, https://www.yahoo.com/lifestyle/bitcoin-breaches-us-24-000-022519727.html
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