The crypto rally was boosted during the weekend following Friday’s data that showed U.S. Consumer Price Index (inflation rate y-y) eased further in December 2022 to 6.5% vs 7.1% in November, which weighed negative on the greenback and U.S. Treasury yields.
Due to a falling dollar and bond yields coupled with a high appetite for risk assets (supports bullish moment on cryptos), the price of the crypto market leader, Bitcoin (BTC), has added $5,000 per coin, or over 30%, since the start of 2023, breaking above the $21,000 level for the first time since FTX’s bankruptcy at early November 2022.
BTC/USD pair, 2-hour chart
Ethereum, the second largest token after Bitcoin, has gained nearly 35% year-to-date, hovering at nearly $1,600, lifting its market cap to nearly $200 billion.
However, the most significant gainers among the crypto leaders have been the Solana and MANA tokens, with the first gaining nearly 300% since bottoming at $8 on Dec. 29, 2022, currently trading at around $25, while the Metaverse-linked token more than doubled its price from the lows of $0.30 to the current highs of $0.70s in the same period.
The total cryptocurrency market capitalization reached its highest level in over two months this morning (Jan. 16) climbing toward the key $1 trillion mark. Bitcoin has nearly the 40% of the total market capitalization, followed by Ethereum with nearly 20%, Tether with 7%, and Binance token with 5%.
Despite the recent rebound, the total cryptocurrency market capitalization is still 50% below the $1.88 trillion crypto market cap seen before the Terra-Luna ecosystem collapsed in April 2022, and still 70% below the $3 trillion crypto market cap seen when Bitcoin topped at nearly 69,000 at early November 2021.
2022 had being a wild year for the crypto ecosystem driven by the bankruptcies of major players in the market beginning with the Terra/LUNA ecosystem in April and followed by the collapse of the FTX crypto exchange platform and its token FTT.
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