- The flagship crypto has surged to levels last seen in September last year.
- Amid a changing sentiment, altcoins are also showing positive momentum.
Bitcoin added more than $2,000 Saturday, rising to a multi-week high of $23,243, according to data by CoinMarketCap. The surge –also reflected in several alternative coins (non-bitcoin cryptocurrencies) has pushed the market capitalization of the whole industry – to more than $1.06 trillion.
Above the $22,800 price mark, BTC is trading at the highest level in 18 weeks. The current surge, however, has caused millions of dollars in the liquidation of overleveraged short positions. On the other hand, the second-largest cryptocurrency Ether has turned in significant gains in the same period, rising +6% in the past day and +7% in the past week.
Among the altcoins showing a significant upsurge is Aptos’ token APT, which has pumped more than 54%. Optimism and Solana have equally gained 31% and 18%, respectively. The metaverse related- tokens have also made it to the top gainers’ list, per the on-chain data. MANA has climbed 18%, while SAND is up 16% in the same period.
The Price Rally Defies the Recent Collapse of Genesis Global Capital
The ongoing price pump comes amid more volatility in the cryptocurrency space. It recently saw crypto lender Genesis Global Capital file for bankruptcy protection, going down with more than 100,000 creditors, among them Gemini. Part of the reasons linked to the lender’s insolvency is its exposure to the now-bankrupt Three Arrows Capital and FTX. According to Oanda’s senior market analyst Edward Moya, the market had already priced in the news.
Besides, the market is optimistic that the macroeconomic factors – which pinned down the industry last year – could be easing. The unexpected drop in the Producer Price Index (PPI) shows a possibility that the Federal Reserve could go slow on increasing borrowing rates. Prediction from the CME FedWatch tool projects that the agency could hike interest rates by 0.25 percentage point when it convenes in February compared to a 50 basis-point rate last month.
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