Bitcoin and Ethereum Reach Highest Levels Since Mid-August

Bitcoin (BTC-USD) has surged to its highest level since mid-August, reaching a peak of $25,104 on Thursday morning.[0] The world’s biggest cryptocurrency gained 10.7% to reach $25.21K earlier in the session, bringing year-to-date gains to just under 50%.[1] Ethereum (ETH-USD) also rose 8.6% to $1.71K, although both tokens still have a long way to go to reach their respective November 2021 highs.[0]

Mike Novogratz, a supporter of cryptocurrency, believes there is a high possibility that Bitcoin will reach back to $30,000 by the end of the upcoming month, a much lower prediction than the one of $500,000 he had initially proposed. However, this would still be a 25% rise from its current cost.[2]

The crypto market capitalization rose by 6.9% within a 24-hour period, reaching US$1.10 trillion, the highest level since the middle of August. Additionally, the total trading volume increased 7.9% to US$63.61 billion.[3] Flows into bitcoin have been driving the gains, as investors become more optimistic and move away from altcoins.[4] Bitcoin’s market dominance is steadily growing, as it is the only cryptocurrency that has been labeled as a “commodity” by the chair of the SEC.[5]

The gains follow the release of January’s Consumer Price Index that showed prices rose 0.5% for the month and 6.4% year-on-year.[6] The figures were higher than the predicted 0.4% monthly increase and 6.2% yearly increase, yet they do demonstrate that inflation has been steadily decreasing over the past several months in the world’s largest economy.[3]

Some of the optimism may have come from softer-than-feared comments from the SEC, but it appears that the rally was concentrated in Bitcoin and Ethereum, as other tokens remained underwater when compared to prices seven days ago.[7]

The rally was also driven by investors liquidating almost US$70 million of mostly short-position bets, according to data aggregator GlassNode.[8] Short positions, or bets the price of Bitcoin would fall, had grown following a series of U.S. regulatory crackdowns this month on crypto services.[8]

0. “Bitcoin pops to highest in six months as regulatory crackdown fears ebb” Seeking Alpha, 16 Feb. 2023,

1. “Bitcoin touches $25,000 for first time since August as 2023 crypto rally continues” Yahoo News, 16 Feb. 2023,

2. “Galaxy Digital CEO Novogratz Sees Chance of Bitcoin (BTC) Hitting $30000” Bloomberg, 15 Feb. 2023,

3. “Markets: Bitcoin, Ether, other major tokens rise despite hotter-than-expected CPI reading” Yahoo! Voices, 15 Feb. 2023,

4. “Bitcoin price rally fails to turn derivatives traders bullish, here’s what to expect” FXStreet, 16 Feb. 2023,

5. “Bitcoin rises despite U.S. crackdown, as crypto market gains $84 billion in value” CNBC, 16 Feb. 2023,

6. “Bitcoin breaks $25K for first time since mid-2022, some hail thaw of crypto winter” Fortune, 16 Feb. 2023,

7. “Bitcoin risks getting stuck near $25K” ForexLive, 16 Feb. 2023,

8. “Bitcoin breaches US$24,000 to reach highest price since August as short sellers liquidated” Yahoo Life, 16 Feb. 2023,