16/01/2023
New Year, new rally: Why bitcoin is up 26% this month after a tumultuous 2022
Bitcoin
has begun 2023 on a positive note, with the price of the world’s largest digital token up roughly 26% since the start of January.
On Saturday, bitcoin’s price rose above $21,000 per coin for the first time since Nov. 7.
It’s still a far cry from the $68,990 record high bitcoin notched in Nov. 2021. But it has given market players cause for some optimism.
The month-to-date rally follows a grim 2022, which saw major insolvencies and scandals in the crypto industry, including the collapse of FTX, and a sharp pullback in the broader market linked to central bank actions.
Analysts say that a number of factors are behind bitcoin’s New Year rise, including an increased probability of interest rates being lowered, as well as purchases by large buyers known as “whales.”
