Bitcoin has been consolidating since mid-December. Capital refused to enter the cryptosphere after the decision of the Federal Reserve System to increase the discount rate.
The US stock market was also under strong pressure, which persisted until early January.
Last week, optimistic data on consumer inflation revived traders, and they again began to enter risky assets, including digital currencies.
On Saturday, bitcoin broke the resistance around $20,000, and on Sunday it briefly broke above $21,000.
However, the night before, as part of the correction, the largest digital currency fell to $20,882. During the week, its value increased by almost 23%. On the night of Monday, January 16, the capitalization of BTC exceeded $402.273 billion.
Ether (ETH) jumped by 22% to $ 1,550.5 in seven days. Solana (SOL) turned out to be the most productive of the top ten altcoins, its price soared by almost 70% in a week to $ 23.35. The capitalization of the crypto market came close to $ 982 billion.
Fundstrat strategist Sean Farrell said in an interview with Bloomberg that the rally in the cryptocurrency market was a direct result of soft inflation data in the United States.
In addition, the expert is confident that the correlation of digital currencies and the stock market will remain high in the medium term.