Bitcoin Climbs Over 10% This Week To $22k• January 20, 2023 9:28 pm • Comments
In the past few weeks, the data shows that Bitcoin has actually outperformed many other asset classes including stocks and indexes.
Bitcoin had increased by approximately 12% in the last week while the stock market had stagnated and decreased a few percentages.
This is quite interesting given the fact that the stock market and the crypto markets very often correlate and move in the same general direction.
The fact that the crypto markets have suddenly gained strength alone may indicate that the market is starting to mature or that there is new institutional capital that is specifically flowing to the new sector.
It may also help that inflation concerns are starting to slowly go down which may further encourage investors to allocate more capital to assets that are considered riskier like crypto.
Breaking 📢#Bitcoin just hits $22k despite #Genesis Bankruptcy.
You can't stop #Btc pic.twitter.com/tVL18q4soj
— CILLIONAIRE.COM (@cillionaire_com) January 20, 2023
Bitcoin and ether rose 2.73% and 2.15%, respectively, in the same four-day period.
“Bitcoin seems to be trading along with the Nasdaq and risk assets again, after the past months of decoupling,” said Sylvia Jablonski, CEO and chief investment officer at Defiance ETFs.
“This is good news for crypto investors in that if inflation is falling, and the Fed is closer to the end than the beginning of economic tightening, risk assets will catch a breath of fresh air and perhaps lure investors back in.”
Bitcoin traded in lockstep with stocks through most of 2022 as institutional investors that entered the crypto market in the previous year and government stimulus and Federal Reserve monetary policy tightening became the biggest drivers of price.
The recent bull run seems to indicate that the market has also made somewhat of a recovery even after all the events that happened in the past year such as the FTX collapse and multiple other bankruptcies.
It may once again prove that the fundamental value of these assets have not changed and that investors are starting to recognize that.
The crypto firms and blockchain projects that survive each crypto winter are ultimately the ones that will spearhead the growth of the new sector.
Therefore, what happened in 2022 can be considered positive because it will separate the winners from the losers which will always happen with new technologies.
The one missing piece that is still missing is a regulatory environment that will support the industry.
• $BTC price surpasses $22k and is currently trading at $22,625.25, with a 7.54% increase over 24 hours. Per @CoinMarketCap
• #Bitcoin hash rate hits a new all-time high, reaching over 275 EH/s. The current rate is just below 240EH/s. Per @CoinWarz pic.twitter.com/2Ioi4AeG8L
— Crypto Cash Flow (@_CryptoCashFlow) January 20, 2023
This week’s crypto market rebound got another jolt on Friday afternoon as Bitcoin (BTC) blasted off to heights unseen since August 2022, with fellow market leaders like Ethereum (ETH) and Solana (SOL) also posting sizable gains.
Bitcoin has peaked as high as $22,687 so far this afternoon, per data from CoinGecko, and at a current price of $22,613 has risen almost 8% over the past 24 hours.
The last time that Bitcoin traded that high was on August 18, 2022, well before November’s collapse of exchange FTX sent the leading cryptocurrency’s price plummeting below the $16,000 mark.
Today’s sudden pump pushes Bitcoin’s seven-day gains to 20%, with a 34% jump registered over the last 30 days. Bitcoin remains down 68% from its all-time high price above $69,000 set in November 2021, but the recent gains show a crypto market on the rise after a brutal 2022.
Bitcoin Surges Past $22k Triggering Another $250 Million in Liquidations – CryptoPotato via BTCnews for iOS https://t.co/j7iFQwh8S8
— BTCnews iOS App (@btcnewsapp) January 21, 2023
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