After suffering losses for much of the past year, bitcoin and other cryptocurrencies are on the rise again in 2023, fueling speculation that the so-called cryptocurrency winter — the world’s digital equivalent of a bear market — is over.
Bitcoin, the world’s most popular cryptocurrency, is up 25% from last month, hovering above $20,000 for the first time since November, when the collapse of Sam Bankman-Fried’s FTX trading platform shocked the industry.
Ethereum, the number two cryptocurrency, is up more than 30% in the past month, and was trading above $1,500 on Monday.
“Wall Street is very confident that the end of the Fed’s tightening cycle is near, and that provides some fundamental support for cryptocurrencies,” Ed Moya, senior market analyst at Oanda, wrote on Friday.
“Unless we hear some strong resistance from the Federal Reserve or commodity prices rally, cryptocurrency traders should not be surprised if Bitcoin is able to extend its recent gains.”
Bitcoin peaked over a year ago, in November 2021, just under $69,000. Two months ago, when the FTX contagion gripped the digital asset market, bitcoin fell to a two-year low of $15,480.
While the US stock and bond markets are closed on Monday in observance of Martin Luther King Jr. Day, cryptocurrencies are traded 24/7.
This content was originally created in English.
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