Bitcoin is up 25% as the cryptocurrency markets rebound

New York

Bitcoin bulls are back.

After suffering losses for the better part of last year, bitcoin and other cryptocurrencies are rallying in 2023, fueling speculation that the so-called crypto winter — the global digital asset equivalent of a bear market — is over.

Bitcoin, the world’s most popular cryptocurrency, is up 25% over the past month, hovering above $20,000 for the first time since November, when the collapse of Sam Bankman-Fried FTX trading platform sent shockwaves through the industry. The value of Ethereum, the second digital currency, has risen more than 30% over the past month, and was trading above $1,500 on Monday.

“Wall Street is very confident that the end of the Fed’s tightening cycle is near us and this provides some fundamental support for cryptocurrencies,” Ed Moya, senior market analyst at Oanda, wrote on Friday. “Unless we hear some strong and hawkish retreat from the Fed or commodity prices rally, cryptocurrency traders shouldn’t be surprised if Bitcoin is able to extend its recent gains.”

Bitcoin peaked over a year ago, in November 2021, just shy of $69,000. Two months ago, when the FTX contagion gripped the digital asset market, bitcoin fell to a two-year low of $15,480.

While the US stock and bond markets are closed on Mondays in observance of Martin Luther King Jr. Day, cryptocurrencies are traded 24 hours a day, seven days a week.

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