January has been a break-out month for Bitcoin and Ethereum amid a biting crypto winter that has seen layoffs and bankruptcy filings.
After a minor correction that sent Bitcoin (BTC) from just above $23,000 to about $22,400 on Wednesday, the leading cryptocurrency has rebounded to hit a January high of $23,501 later the same day before dropping to the current price of $22,974.
This is still an increase of 1.7% in the day and more than 11% over the past week, according to CoinGecko.
The latest price action also means that Bitcoin has gained an impressive 36% in the last 30 days, with yesterday’s peak taking the world’s largest cryptocurrency to a height not seen since mid-August last year.
Ethereum (ETH) followed a similar trend, taking a slight dip before surpassing the $1,600 level first conquered last weekend.
ETH is up 3.5% over the day and 6.5% in the week, currently changing hands at $1,614, per CoinGecko.
The industry’s two largest cryptocurrencies by market capitalization, often seen as benchmarks for the rest of the sector, are also boasting a cumulative trading volume of more than $56 billion in the past 24 hours, surpassing the $53 billion posted by stablecoin Tether (USDT).
Have Bitcoin and Ethereum bottomed?
As the market’s impressive run continues, many may certainly wonder whether we are witnessing the beginning of a larger bull run, or if there’s another bull trap on the horizon.
“The market has seen a significant decrease in liquidity over the past year due to several major players pulling back, exiting, or being exited," Jeff Mei, chief operating officer at crypto exchange BTSE, told Decrypt. "Additionally, the market has also seen a reduction in the number of 'crypto tourists'—investors with weaker long-term convictions.”
According to Mei, in the wake of major market corrections like the one seen last year, “it is common to see more experienced and confident traders stepping in to put a bottom on prices.”
The overall market capitalization appears to be holding steady above $1 trillion, after reclaiming that figure on January 14.
Still, this is a far cry from the industry's peak back in November 2021 when crypto coins commanded over $3 trillion in value.
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.