Bitcoin Breaks $18,000 for First Time in a Month After Nine-Day Rally
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Bitcoin Breaks $18,000 for First Time in a Month After Nine-Day Rally

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Created 1yr ago, last updated 1yr ago

Among crypto analysts, there is hope that maybe — just maybe — the crypto markets are turning a corner after a truly dismal year that was pockmarked by a slew of bankruptcies.

Bitcoin Breaks $18,000 for First Time in a Month After Nine-Day Rally

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Bitcoin has broken $18,000 for the first time in a month, as the world's biggest cryptocurrency shows signs of a bullish start to 2023.

Data from Coinglass shows that BTC has rallied for nine consecutive days, amid optimism in the wider market that inflation is cooling, and the pace of interest rates may slow.

And among crypto analysts, there is hope that maybe — just maybe — the crypto markets are turning a corner after a truly dismal year that was pockmarked by a slew of bankruptcies.

Overall, BTC has rallied by 9.5% since January began — and if it manages to hold onto these gains for the next few weeks, this would be the best monthly performance since July 2022.

But there are challenges on the horizon. In a blog post announcing that he was cutting 950 jobs, Coinbase's CEO Brian Armstrong warned contagion may spread deeper into the crypto industry.

Regulation is also set to be a dominating theme in 2023 following the collapse of FTX, and there's a real risk that the ensuing drama could put off institutional investors.

CoinMarketCap data shows that other cryptocurrencies have also benefited from this recent reversal in fortunes.

Ether has rallied by about 5% over the past 24 hours, extending these gains to 12% over a seven-day timeframe.

All of this has helped the world's second-largest cryptocurrency crack $1,400 — a level that hasn't been seen since November.

Avalanche is far and away the biggest winner among the top 100 cryptocurrencies by market cap after a remarkable 23% rally over the past 24 hours.

The Bigger Picture

Bitcoin's move upwards may have been helped along by the S&P 500 closing Wednesday's trading session up 1%.

On Thursday, hotly anticipated Consumer Price Index figures from the U.S. are set to reveal how inflation changed in December.

This data will be front of mind for the Federal Reserve, with central bank officials set to decide on a new interest rate rise on Feb 1.

Some analysts believe that the next hike may only be 0.25 percentage points — a stark contrast to the 0.5 and 0.75 percentage point rises seen in 2022.

Current forecasts suggest that CPI will have risen by 6.5% year on year in December. While this is well above the Fed's target of 2%, this is substantially lower than in recent months.

If the figure ends up being lower than this when data is released later today, this could help propel stocks and cryptocurrencies higher.

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