• Bitcoin has retaken the $20K mark, leading a broad crypto rally this week.
• Ethereum has also surged more than 20% year to date and is approaching $1,500.
• Crypto-related stocks have also seen gains, with Coinbase and Marathon Digital Holdings up 39% and 76%, respectively.
The cryptocurrency market has been on a wild ride this week, with bitcoin leading the charge. After hovering around the mid-$16,000 mark for the past few weeks, BTC surged to above the $20,000 mark, marking a 20% increase in the opening two weeks of the year. This is the first time that bitcoin has been above the $20K mark since the FTX collapse in early November.
The second largest cryptocurrency by market capitalization, ether (ETH), has also seen impressive gains. It is currently trading near $1,500, having gained more than 20% year to date. This marks the first time ETH has been at this price since early November.
The crypto rally has been accompanied by gains in crypto-related stocks. Exchange Coinbase (COIN) has seen a 39% increase, while bitcoin miner Marathon Digital Holdings (MARA) has jumped 76%.
The overall crypto market has seen gains as well, with CoinDesk’s Market Index (CMI) rising 14% for the week. Such an impressive start to the year has many speculating that bitcoin may be entering a renewed bull market. Craig Erlam, senior market analyst at foreign exchange market maker Oanda, believes that $20,000 “once [was] deemed a disturbing low but now potentially represents a sign of a revival.”
Time will tell if the crypto rally will continue, but for now, it appears that the market is in a strong position. With the crypto-related stocks also seeing gains, it looks like the crypto market is headed in the right direction.