CoinMarketCap data shows the best performers among the 20 biggest cryptocurrencies were Solana and Cardano — up 20% and 15% respectively compared with 24 hours ago.
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The crypto markets have started the week with a modest surge upwards — helping Bitcoin break through $17,000 for the first time since mid-December.
As of 9.30am London time on Monday, the world's biggest cryptocurrency was trading at $17,241.79 — up 1.64% over the past 24 hours, and 3% on a seven-day timeframe.
Many major altcoins were delivering an even stronger performance, with Ether breaking $1,300 after a 3.94% intraday surge.
CoinMarketCap data shows the best performers among the 20 biggest cryptocurrencies were Solana and Cardano — up 20% and 15% respectively compared with 24 hours ago.
While this sea of green may offer some welcome respite for crypto investors, it's shaping up to be quite a turbulent week. And that means these gains may end up being short-lived.
Reports suggest Digital Currency Group — a giant in the crypto space — is facing scrutiny from federal regulators, and this comes as lending subsidiary Genesis battles to avoid bankruptcy.
The blockchain project Tron is also in the spotlight after its USDD stablecoin lost its peg to the U.S. dollar — and at the time of writing, it's trading at $0.9767.
What Caused Bitcoin's Spike?
Bitcoin was trading in an exceptionally tight range last week, remaining pinned around the $16,800 level for days on end.
But there was a glimmer of bullish momentum in global markets towards the end of last week that primarily benefited riskier assets.
Driving factors in this rally included China's decision to ease COVID restrictions — potentially boosting global trade.
Analysts are also looking for any signs that the Federal Reserve, and other central banks around the world, will slow down the pace of interest rate hikes.
On Thursday, the U.S. will release hotly anticipated inflation figures for December — data that could help shape the Fed's thinking in the weeks ahead.
Policymakers are due to meet on Feb. 1, and there's uncertainty over whether a 0.25 or a 0.50 percentage point increase will be unveiled.
Poring over Bitcoin's chart, CryptoQuant analyst VentureFounder wrote on Twitter:
"Bitcoin has been stuck between $16k and $18.5k for 2 months now. Watch this range very very carefully, a break from either direction can bring 20% volatility, could happen soon. A definitive break of $16,000 could see $13,000, make $18,500 support and we can see $22,500."
