Coinbase and Marathon Digital Holdings see significant gains during crypto rally

 Bitcoin, the largest cryptocurrency by market capitalization, has made a strong comeback in the opening weeks of the year, crossing the $20,000 mark for the first time since the FTX collapse in early November. The crypto, which was hovering around the $17,000 mark at the start of the week, has now reached $20,250, gaining more than 20% in the first two weeks of the year. 

Despite the impressive surge, it is worth noting that Bitcoin remains near the low end of a brutal bear market, considering that it had topped $65,000 in November 2021. However, the $20,000 mark, which was once considered a disturbing low, now potentially represents a sign of revival, according to Craig Erlam, senior market analyst at foreign exchange market maker Oanda. 

Ether (ETH), the second-largest cryptocurrency by market capitalization, is also moving higher, up more than 20% year-to-date and threatening $1,500 for the first time since early November. This broad crypto rally is not limited to just these two cryptocurrencies, as crypto markets across the board have surged this week, with crypto-exposed stocks also benefitting from the advance.

 Crypto-related stocks have also seen a significant boost from the rally this week. Exchange Coinbase (COIN) was up 39% while bitcoin miner Marathon Digital Holdings (MARA) surged 76%. This is a clear indication of how the cryptocurrency market is becoming more mainstream and how more and more traditional companies and investors are becoming interested in the space. 

The traditional markets also had a positive week, with the S&P 500 gaining more than 2% as the Q4 earnings season began and as U.S. inflation numbers continued to move lower. The first monthly inflation decline in two-and-a-half years and further sharp annual declines in both the headline and core readings have added to the optimism in the market, according to Erlam.

The cryptocurrency market is known for its volatility, and it is impossible to predict with certainty what the future holds. However, the strong rally in the opening weeks of the year is a positive sign, and it will be interesting to see how the market performs in the coming months. With more mainstream companies and investors entering the space, it is clear that the cryptocurrency market is becoming more mainstream, and it is here to stay."