// investNai

Crypto Market Surges in Early 2023 as Bitcoin Reaches Above $20,000


The crypto market has seen a surge in the first two weeks of the year, with Bitcoin (BTC) reaching above $20,000 for the first time since the FTX collapse in November 2021. The largest cryptocurrency by market capitalization started the week near the $17,000 mark and has now gained more than 20% in the opening two weeks of the year. While it remains near the low end of a brutal bear market, analysts believe this could be a sign of a revival.

Ether (ETH) has also seen a positive start to the year, rising more than 20% and approaching $1,500 for the first time since early November. The CoinDesk Market Index (CMI) also rose 14% for the week.

Crypto-related stocks also benefited from the rally this week, with exchange Coinbase (COIN) up 39% and bitcoin miner Marathon Digital Holdings (MARA) surging 76%.

Traditional markets were also higher for the week, with the S&P 500 gaining more than 2% as Q4 earnings season began and as U.S. inflation numbers remained elevated but continued to move lower. Nicholas Colas, co-founder of the market analysis firm DataTrek Research, stated that while the U.S. Federal Reserve’s policy still matters, other issues such as China’s reopening, the pace of US economic and corporate earnings growth, and positive real rates will also play a role in investors’ decisions.

Overall, analysts remain optimistic for the year ahead, with Craig Erlam, senior market analyst at foreign exchange market maker Oanda stating, “None of this guarantees that 2023 will be a good year for risk assets, but it does say it will look a lot more normal than last year.”