During the weekend trading session of bitcoin and altcoin prices continued to increase strongly, the stocks of crypto companies also benefited from this increase.
In 2023, investors expect the cryptocurrency market to show many signs of recovery. Since the FTX exchange collapsed in early November 2022, this is the first time the BTC price has surpassed $20,000.
The largest cryptocurrency by market capitalization started the week near the $17,000 mark after hovering in the mid-$16,000 region since mid-December last year. Currently at the time of writing, BTC price is recorded at 20,815 USD, bitcoin has increased by more than 25% in the first two weeks of this year.
However, since bitcoin once peaked at $65,000 in November 2021, the bulls still have a lot of work to do.
“The $20,000 mark was once considered a worrisome low but is now likely to be a sign of a recovery,” said Craig Erlam, an analyst at Oanda.
“The market-wide optimism has been compounded by a drop in inflation,” Erlam added.
Not only bitcoin, the entire cryptocurrency market is also flooded with green. In which ETH is up more than 20% year-to-date and hits above $1,500 for the first time since early November 2022.
Crypto-related stocks also benefited from this week’s rally. Exchange Coinbase (COIN) is up 39% while bitcoin miner Marathon Digital Holdings (MARA) is up 76%.
Nicholas Colas, co-founder of market analytics firm DataTrek Research, wrote, “Fed policy is still important, but other issues such as China reopening after a while. The long-term battle with COVID, U.S. economic and corporate earnings growth, and positive real interest rates will all jostle for investors’ attention.”
“None of this guarantees that 2023 will be a good year for risky assets like bitcoin, but it does say it will be a lot more normal than last year,” Colas said.