Bitcoin on Track for Best January Since 2013, Led by Bullish Trading During US Hours

Bitcoin has rallied almost 40% since Jan. 1, on track for its best opening to a year since 2013 when it surged 51%.

AccessTimeIconJan 27, 2023 at 8:50 a.m. UTC
Updated Jan 27, 2023 at 4:18 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Bitcoin (BTC) is having its best start to the year since 2013. The price of the largest cryptocurrency by market capitalization has jumped 40% this month amid weakness in the U.S. dollar. The rally has been powered predominantly by U.S. buyers, observers say.

  • "Bitcoin is up +40% year to date with +35% of those returns occurring during U.S. trading hours. That's an 85% contribution of the rally associated with U.S.-based investors," Markus Thielen, head of research and strategy at crypto services provider Matrixport, said in a note to clients on Friday.
  • "We interpret this as a clear signal that U.S. institutions are buyers of bitcoin right now," Thielen added.
  • Bitcoin surged 51% in January 2013.
  • Unlike stocks, bitcoin – and cryptocurrencies in general – trade 24 hours, allowing observers to keep track of order flows across different time zones and infer the source of buying or selling pressure.
  • Institutions' bullish positioning is also evident from the renewed premium in bitcoin futures listed on the Chicago Mercantile Exchange.
  • "Institutions are not only buying bitcoin spot; rather, we are also seeing consistently high premiums for perpetual futures. We interpret this as an indication that faster institutional traders and hedge funds are actively buying the recent dip in crypto markets," Thielen noted.
  • Deutsche Digital Assets made a similar observation earlier this month, drawing attention to the uptick in Coinbase premium as evidence of increased buying interest from sophisticated U.S.-based investors relative to retail investors.
  • "Traditional and crypto-focused hedge funds, corporates and traditional asset managers have been buying," Coinbase Institutional's head of research, David Guong, wrote in a weekly market commentary published Jan. 20.
  • Bitcoin's institution-led bullish turnaround might be a good sign for the U.S. equity market, considering the cryptocurrency's record of bottoming out weeks ahead of the S&P 500.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Omkar Godbole

Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.