Bitcoin Surges to $24K: Is Liquidity Grab the Reason?

• Bitcoin recently closed its most prosperous January since 2013, with a monthly increase of almost 40%.
• On Thursday, the token surged confidently above the $24k level and investors are trying to guess what pumped the price.
• The market was poised for heightened price volatility during the US Federal Reserve’s first FOMC meeting of the year, which resulted in a 25 basis point hike in interest rates.

Overview of Bitcoin

Bitcoin is the first decentralized digital currency, created in 2009 by Satoshi Nakamoto. This revolutionary digital asset operates on a peer-to-peer network built on blockchain technology and operates without the need for a central authority or banks. It has a fixed supply limit of 21 million coins, released into circulation through mining activity where miners validate transactions and receive rewards in Bitcoins. Blockchain technology ensures an immutable ledger, with transactions added in chronological order making it impossible to alter or reverse.

January Performance

Bitcoin started 2021 off strong by breaking through the $17,000 mark at the start of the year and reaching a high of almost $23,000 by the end of January—its most prosperous January since 2013. This impressive performance has proven that Bitcoin continues to be a force to be reckoned with in finance markets.

US Federal Reserve Meeting Impact

The market was prepared for increased volatility during US Federal Reserve’s first FOMC meeting of 2021 as they announced a 25 basis point rise in interest rates—typically seen as bullish signal for risk-on assets given there have been 75 basis points increases over time.

Thursday Price Jump

Despite initial dips following Wednesday’s liquidity grab, Bitcoin made a significant jump on Thursday reaching its highest price since August 2022 at $24350 USD; maintaining strong green presence on daily scales with market cap currently at 456 billion USD and 42% dominance over entire cryptocurrency markets.


Bitcoin remains one of strongest performing digital assets across financial markets worldwide despite recent dips from liquidity grabs and other factors such as US Fed rate hikes; proving to be resilient against macroeconomic pressures while continuing to reach new highs at unprecedented levels throughout 2021 so far.