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Neither the author, Tim Fries, nor this website, The Tokenist, provides financial advice. Please see our website policy before making financial decisions.

Despite some FUD prompted by the DoJ posting an announcement on Wednesday, Bitcoin is continuing its 2023 rally and is up nearly 6% on Friday alone. Other cryptocurrencies are following a similar path, with Etherium also up 6% and BNB up 2.5%.

BTC price chart showing the surge to $22,000 and above on Friday, January 20.
This Friday, Bitcoin climbed above $22,000 for the first time since September 2022
(Image courtesy of TradingView)

Bitcoin continues its January rally and hits a four-month high

The world’s largest cryptocurrency spent late 2022 trading mostly between $16,000 and $17,000. In fact, the last time Bitcoin had a price above $22,000 was in September and it crashed below $20,000 shortly before FTX went bankrupt without recovering value for the rest. of the year.

January brought an unexpected rally across the crypto industry with several large digital assets – and shares of some digital asset companies— seeing a steady increase in the first weeks of the year. ETH is up nearly 40% year-to-date, and crypto exchange Coinbase’s stock, which fell from $230 to $35 between January and December 2022, rose 64% to 55. $ during the same period.

Even the price of FTX’s FTT token rose by around 30% this week, although this was the result of the news that the the new management of the stock exchange is considering a reopening. The only setback facing the crypto market rally this week came on Wednesday morning when the Department of Justice announced that he would make a major announcement at noon.

BTC price chart showing Wednesday's decline and partial recovery.
Bitcoin and many other assets took a significant dive on news of the announcement and only partially recovered after it was revealed that the enforcement action targets little-known exchange Bitzlato.
(Image courtesy of TradingView)

The fact that the DoJ revealed that it would be accompanied by other important government agencies, including the FBI, caused a temporary FUD that saw a sharp drop in the price of assets like Bitcoin. The fall was relatively short once it was revealed is about a little-known exchange called Bitzlato. The ad has since been widely referred to as “nothing burger”.

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A tumultuous week for crypto is coming to an end

Besides the action against Bitzlato, this week saw several major developments in the crypto industry. Just Friday, a hearing into the controversial role of the Sullivan and Cromwell law firm took place, and the Genesis lending entities filed for Chapter 11 bankruptcy after months of uncertainty.

While disgraced former FTX CEO Sam Bankman-Fried tried to blame the bankruptcy of his exchange – and, perhaps more importantly, the bankruptcy of its US subsidiary that he claims to be useless— On the law firm, S&C’s role in the proceedings only became a hotly debated topic Thursday afternoon after former chief compliance officer Dan Friedberg filed his affidavit. While Freidberg presented a slew of allegations against the law firm, the bankruptcy judge ultimately characterized the testimony as “filled with hearsay, innuendo, speculation, and rumour,” and allowed FTX to hire S&C as his bankruptcy attorney.

The announcement of the bankruptcy of Genesis credit branches. The bankruptcy was widely speculated about since November of last year and has been reported as almost imminent Wednesday before finally being tabled at the end of the week.

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How far will Bitcoin go in this rally? Let us know what you think in the comments below.

About the Author

Tim Fries is the co-founder of The Tokenist. He has a B.Sc. in Mechanical Engineering from the University of Michigan and an MBA from the University of Chicago Booth School of Business. Tim was a senior partner on the investment team in the US Private Equity division of RW Baird and is also a co-founder of Protective Technologies Capital, an investment firm specializing in detection, protection and control solutions.

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