Why is Bitcoin Price Going Up Today?

Crypto markets went all green after Bitcoin price surged to US$ 21,000. In this article, let’s find out why the Bitcoin (BTC) price went up today?

January 20, 2023
Key Takeaways:
  • Bitcoin went surging by more than 22% in the last seven days. 
  • The price increase began on 12 January 2023. After that, BTC kept going up to US$ 21,000 on 14 January 2023.
  • At the time of writing, the BTC price currently stays at US$ 21,500.

Bitcoin (BTC) is the cryptocurrency with the largest market capitalization. Since mid-2022, the price of BTC has been dropping drastically. From US$ 64,000 at the beginning of 2022, it has fallen to US$ 16,000 at the beginning of 2023. But in the past week, Bitcoin has regained its strength with a short rise in price. So, what is the reason why the price of Bitcoin is increasing at this time?

Bitcoin Price Movement During This Week

On 9 January 2023, the BTC price was still at US$ 16,947. Then on 12 January 2023, the price of BTC began to increase to as low as US$ 18,233. Thaw was the time when Bitcoin started the price rise. The peak was on 14 January 2023, and the BTC price increase skyrocketed to US$ 21,047. When the article was written, today's Bitcoin price reached US $ 21,281.

Within a week, the price of Bitcoin (BTC) immediately skyrocketed by more than 23%. This price increase was triggered by several factors that affected the crypto market and the stock and bond markets.

 

Source: TradingView

Of course, there are reasons why the BTC price is going up this week. According to our research, below is a list of reasons that push Bitcoin price.  

Consumer Price Index (CPI) Reports

One of the primary triggers that pushed Bitcoin prices up this week was the consumer price index (CPI) reports, which showed that total inflation for all urban consumers dropped by 0.1%.

The Bureau of Labor Statistics (BLS) released the CPI, which showed headline CPI rose 6.5% while core increased 5.7%, which looks to be a primary catalyst for the price surge.

Read more: How Does Macroeconomics Affect Cryptocurrency Price?

Ethereum Shanghai Upgrade

The Ethereum Shanghai upgrade is a step taken by the Ethereum team after successfully carrying out the Ethereum Merge, where the Ethereum blockchain migrated from Proof-of-Work to Proof-of-Stake. The Ethereum blockchain will allow validators to stake their withdrawals in this upgrade.

The Ethereum Shanghai upgrade is planned to be launched on the mainnet in March 2023. The "Shanghai Hard Fork," Ethereum's next upgrade, is also considered the trigger of the crypto market price increase because it would liberate coins that have been frozen and unreachable for months.

Read more: Ethereum Shanghai Upgrade: What to Expect

FTX US $ 5 Billion Liquidations

Throughout the end of 2022, the crypto industry was shocked by the case that happened to FTX, where Sam Bankman-Fried, the CEO of FTX, used FTX consumer funds. This case was initiated by a report by CoinDesk highlighting potential leverage and solvency concerns involving FTX-affiliated trading firm Alameda Research. Until December 2022, Sam Bankman-Fried was arrested in the Bahamas.

On 11 January 2023, the liquidators of FTX claimed to have collected $5 billion in assets, including cash and cryptocurrency. The court has ordered that monies be returned to clients by 15 March 2023, while FTX's CFO Mary Cilia previously predicted that FTX might do it by April.

What Can We Do After This?

This week's increase in the price of Bitcoin has been good news for traders and investors during this bear market. There is an assumption that this price increase is the closing of a bear market, but there are also those who think the current market condition is just a bull trap.

However, keep in mind that, like any other crypto asset, Bitcoin is also subject to high volatility. Thus, continue to carry out investment strategies and research regarding the crypto market well before you decide to buy Bitcoin in the current market conditions.