BTC Crosses Above $19k For First Time Since FTX Collapse

By Kevin • January 13, 2023 3:18 pm • Comments

Based on recent market price action, it has been recorded that Bitcoin has finally crossed above $19k for the first time since the FTX collapse.

Many optimistic investors have seen the recent current events as “noise” as they do not change the fundamental value of crypto assets and their technology.

As a result, separating the noise from the true value is essential for these investors and it seems that there is still a large portion of investors that have remained bullish throughout these times.

Trending: House BLOCKS SEC’s Anti-Crypto SAB 121 Provisions

It is also interesting to note that the broader equities market is also on an upswing as it seems the general sentiment of a recession has not been as big as expected.

The stock market and the crypto market have been highly correlated for the past few years and it seems that this pattern has not yet been broken.

CoinDesk reports:

Bitcoin is now up about 14% this year after falling 63% in 2022.

Meanwhile, shares of crypto exchange Coinbase (COIN) were up 4% in recent trading. They have risen 35% year to date. The moves in the stocks of bitcoin miners are even more dramatic: Marathon Digital (MARA) is up 16% Thursday and 83% year to date, and rivals Riot Platforms (RIOT) and Hut 8 Mining (HUT) have notched similar gains.

Grayscale Bitcoin Trust (GBTC) – whose discount to net asset value (NAV) widened to nearly 50% toward the end of 2022 – is up 12% for the session, and has now narrowed its discount to NAV to 36.4%.

Shares of MicroStrategy (MSTR) – a software company that has more than 130,000 bitcoins in its reserves – were up 5.5% Thursday and have jumped 42% this year. Grayscale is owned by Digital Currency Group, which is also CoinDesk’s parent company.

One of the other major concerns was inflation which the Federal Reserve has signaled that they will be maintaining high rates for 2023.

On the short term, there was a drop after the announcement but it seems that the negative effect did not last long.

Many are expecting inflation to continue to dip slowly throughout 2023 and experts have warned that it is critical that inflation gets under control during this time.

Otherwise, it would start to soar to new heights and create a unique scenario where investors may look even more into crypto as a way to hedge against inflation.

The two most popular ways that have been considered for hedging and preserving value so far is gold and Bitcoin which has been called “digital gold”.

Whether or not the crypto market will continue this strong rally that has existed in the first few weeks of 2023 is still to be determined however.

CoinTelegraph concludes:

While the margin data shows that sizable leverage was used to push Bitcoin above $18,000, it suggests that the situation was only temporary.

Most likely, those professional traders deposited more margin and consequently reduced their leverage after the event. In essence, the metric looks very healthy because it indicates that margin markets are not overbought.

As for the top trader’s long-to-short, the absence of demand for leverage longs using futures contracts is somewhat concerning, but at the same time, it leaves room for additional purchasing power.

From a derivatives standpoint, even if Bitcoin retests $17,300, the bulls should not be concerned because the derivatives indicators show little demand from short sellers and no excessive leverage from buyers.

Join the conversation!

We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. If a comment is spam, instead of replying to it please click the icon below and to the right of that comment. Thank you for partnering with us to maintain fruitful conversation.

 

Search ProCoinNews