It seems that the year 2023 will be in favor of the crypto market since since the beginning of the year, the market is experiencing a recovery. Now, just 15 days into 2023, for the first time since November 2022. The global crypto market capitalization has surpassed $1 trillion according to data from CoinGecko. The ongoing crypto rally is led by Bitcoin which hit a high of $20,000, the price not seen since early November.
The world’s first cryptocurrency had never seen this price level after November 8. Bitcoin began its recovery journey in early 2023 and today, January 14, the King coin hit $20,000. As of this writing, Bitcoin is selling at $20,902 after rising 11.04% in the last 24 hours.
The same goes with other currencies like Ethereum, Cardano, Solana, BNB, Dogecoin. In fact, Solana is one of the top winners with a jump of more than 40% over the last 24 hours.
This is why the crypto market could rise
One of the reasons for such a positive performance of cryptocurrencies is the release of Consumer Price Index (CPI) January 12. According to reports, the CPI fell to its lowest level in a year of 5.72% in December 2022. The drop in the CPI suggests that inflation is decreasing. This phenomenon pushed the market price up with the hope that the Federal Reserve might reconsider its interest rate hikes. However, the Fed is expected to continue with interest rate hikes until price pressure indicates some certainty.
On the other hand, the news of the collapse of FTX recovering $5 billion in assets, which also includes cash and cryptocurrencies. The judiciary also asked FTX to return the funds to its customers by March 15, 2023. However, the company’s chief financial officer, Mary Cilia, said the funds could be returned by April.
Additionally, the Ethereum community is ready to unveil its next hard fork, Shanghai hard fork which will unlock those ETH tokens that have been staked for months now.
Meanwhile, although Bitcoin managed to claim a level of $20,000, the flagship currency is still down 71% from its all-time high of $69,000.