Bitcoin Defies Bad Tidings to Register Its Best Week Since 2021
There may be a lot of bad stuff going on in the world of crypto right now, but Bitcoin true believers don't seem to care.
The largest digital currency by market value has gained roughly 12% so far this week, on pace for its best weekly performance since October 2021, Bloomberg data show. Other tokens have also gained, with an index of the 100 biggest coins adding more than 10%. Shares of some crypto-related companies are up even more, with Bitcoin miner Marathon Digital adding more than 60% this week.
It's a promising start to the new year for the token, which in 2022 lost more than 60% in its second-worst annual performance on record. And the rally has rekindled animal spirits, with fans enthusiastically posting on Twitter about the fear of missing out on further gains — even as the industry is still grappling with one of its darkest stretches yet amid the fallout of the FTX empire and others.
“In spite of continued bad news for the crypto industry, the recent renewal of interest in BTC continued to gather steam,” wrote Noelle Acheson, author of the “Crypto Is Macro Now” newsletter. “The market is facing seller exhaustion – buyers were having a hard time finding willing sellers, whereas earlier willing sellers had less trouble finding buyers.”
Acheson added that there are also signs interest from institutions has picked up — open interest of Bitcoin futures on the CME in native units has recovered to near end-of-year levels, she said.
The crypto market started 2023 at historically low levels of activity, open interest and volume following last year's drawdowns, according to Citi strategists led by Joseph Ayoub. Given the “systemic shocks” the space has suffered, interest has meaningfully decreased, they write in a
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