Bitcoin (BTC-USD) surged to its highest level since mid-August Thursday morning in Asia, with a 10.7% jump to $25,104, according to CryptoSlate’s data.[0] Ethereum (ETH-USD) followed suit, rising 8.6% to $1,710.[1] This brings year-to-date gains for both tokens to north of 50%, though they remain far from their November 2021 highs.
The total crypto market capitalization in the 24 hours rose 6.9% to US$1.1 trillion, the highest since mid-August, with total trading volume up 7.9% to US$63.61 billion.[2]
Mike Novogratz, CEO of Galaxy Digital Holdings, believes there’s a chance Bitcoin (BTC) could return to $30,000 or above before the end of March.[3]
“When I look at the price action, when I look at the excitement of the customers calling, the FOMO [fear of missing out] building up, it wouldn’t surprise me if we were at $30,000 by the end of the quarter,” Novogratz said.[4]
The prediction is much lower than others Novogratz has made in the past, as he once believed that Bitcoin could reach $500,000 by the end of 2027 if the United States Federal Reserve kept hiking interest rates.[2] In December, however, he changed his outlook and declared that it would take longer than five years for BTC to hit the price mark.[5] The skepticism he felt was due to Jerome Powell, the Federal Reserve Chairman, raising interest rates.[5]
The surge follows the release the day before of January’s Consumer Price Index that showed prices rose 0.5% for the month and 6.4% year-on-year.[6] The figures, although higher than the anticipated 0.4% monthly increase and 6.2% annually, suggest that inflation has been on a decreasing trend for the last few months in the world’s biggest economy.[7]
Investors liquidated almost US$70 million of mostly short-position bets, according to data aggregator GlassNode.[6] Following several U.S. regulatory crackdowns on crypto services this month, bets that the price of Bitcoin would drop (known as short positions) have increased.[6]
0. “Bitcoin briefly soars beyond $25k; $232M in shorts liquidated” CryptoSlate, 16 Feb. 2023, https://cryptoslate.com/bitcoin-briefly-soars-beyond-25k-liquidates-232m-from-short-sellers/
1. “Bitcoin pops to highest in six months as regulatory crackdown fears ebb” Seeking Alpha, 16 Feb. 2023, https://seekingalpha.com/news/3937311-bitcoin-pops-to-highest-in-six-months-as-regulatory-crackdown-fears-ebb
2. “Bitcoin Price Hitting $30,000 This Quarter ‘Wouldn’t Surprise’ This CEO – Here’s Why” Bitcoinist, 15 Feb. 2023, https://bitcoinist.com/bitcoin-price-to-hit-30k-ceo
3. “Galaxy Digital CEO Novogratz Sees Chance of Bitcoin (BTC) Hitting $30000” Bloomberg, 15 Feb. 2023, https://www.bloomberg.com/news/articles/2023-02-15/novogratz-sees-chance-of-bitcoin-hitting-30-000-this-quarter
4. “Bitcoin touches $25,000 for first time since August as 2023 crypto rally continues” Yahoo News, 16 Feb. 2023, https://news.yahoo.com/bitcoin-touches-25000-for-first-time-since-august-as-2023-crypto-rally-continues-181615592.html
5. “Mike Novogratz Says Bitcoin Could Return to $30000 Next Month – Markets and Prices Bitcoin News” Bitcoin News, 17 Feb. 2023, https://news.bitcoin.com/mike-novogratz-says-bitcoin-could-return-to-30000-next-month/
6. “Bitcoin breaches US$24,000 to reach highest price since August as short sellers liquidated” Yahoo Life, 16 Feb. 2023, https://www.yahoo.com/lifestyle/bitcoin-breaches-us-24-000-022519727.html
7. “Markets: Bitcoin, Ether, other major tokens rise despite hotter-than-expected CPI reading” Yahoo! Voices, 15 Feb. 2023, https://www.yahoo.com/now/markets-bitcoin-ether-other-major-020804763.html