Bitcoin, the largest cryptocurrency by market capitalization, peaked above $21,000 on Saturday.
The move has emboldened crypto investors shocked by the collapse of several high-profile crypto companies, including cryptocurrency exchange FTX.
This is the first time since November 8, 2022 that Bitcoin BTCUSD,
has crossed $20,000 and is tracking profit for 11 days.
The rally has hurt the bears who have liquidated hundreds of millions of dollars in short positions. According to Coinglass, these totaled about $125 million on Jan. 14 alone, with the period from Jan. 11 involving nearly $300 million in short liquidations.
Second largest token Ether ETHE,
rose as much as 9.7%, and others like Cardano ADAUSD,
and Dogecoin DOGEUSD,
also notched profits. Solana’s SOLUSD,
rose by as much as 35%.
The profit pushed the total market cap of the cryptocurrency market above $1 trillion for the first time since November, according to data from CoinGecko.
After falling from just above $67,500 to a low near $15,000, a 77% loss from peak to low, Bitcoin has been trading mostly sideways for about 13 months, until buyers reappear this week.
Also see: What’s behind Bitcoin’s great rally, and why crypto traders are betting the worst is over?
The current surge in bitcoin’s value comes after the US Department of Labor released data showing inflation is moderating with consumer prices rising 6.5% in December, up from 7.1% in November.
“Cryptoassets performed well after the soft CPI print, suggesting crypto’s correlation to macro isn’t going away any time soon,” Sean Farrell, head of digital asset strategy at Fundstrat, told Bloomberg.
“This week’s continuation in price action is certainly encouraging,” and aside from forced liquidations of troubled crypto firm DCG, “there is a high probability that the absolute bottom for crypto prices has been reached.”