© By CNBC Bitcoin has an estimated year of 2022. Investors are now cautiously eyeing 2023 when it comes to cryptocurrencies.Cryptocurrencies continued their rally on Friday, breaking above $26,000 for the second time this week.
Bitcoin ended up 7.46% at $26,868.39, according to CoinMetrics. It posted a weekly gain of 34.13% and its best week of the year since January 2021, just ahead of its first gain of the year.
Ether rose 3.87% to $1,745.57. For the week, the index gained 22.88%, its best weekly gain since August 2021.
Stocks edged higher on Friday as traders weighed Credit Suisse futures The bank's woes continued to weigh heavily on investors, even after the lender said it would borrow up to 50 billion Swiss francs ($54 billion) from the Swiss National Bank.
"Bitcoin is very sensitive to liquidity and the liquidity outlook has improved," said Decislava Aubert, an analyst at crypto data provider Caico. “Data showed yesterday that the Fed's assets increased by nearly $300 billion... While the new BTFP tool is not full QE, it essentially injects liquidity into the banking system by lending more than collateral that the Fed promises to return to market value. "
"China is increasing liquidity by reducing reserve ratios for banks," he added. "So it's mostly a feel-good move."
Bitcoin's close above $26,000 could signal the start of a bull market, said Yuya Hasegawa, an analyst at Japanese crypto firm Bitbank. Fairlead Strategies' Katie Stockton said two consecutive closes above $25,200 next week could signal the formation of a long-term uptrend.
Investors cheered a stable cryptocurrency price amid this week's banking crisis. The week began with the closing of Silicon Valley Bank and Signature Bank on Sunday, but all eyes were on First Republic Bank. On Thursday, several major US banks stepped in to help him deposit $30 billion.
Many suggest that Bitcoin has undergone a narrative shift amid the banking crisis. However, cryptocurrency price action is still heavily influenced by the Federal Reserve's inflation and interest rate hikes.
"I still don't see enough evidence to think that the Fed will stop raising interest rates and return from long-term highs," said Kelly Cox, US investment analyst at Etoro. "It's very difficult for speculative cryptocurrencies to survive at high rates. I also think it's very important to understand how your investment is monetized and what the risks are. High rates can destroy the herd and the big ones can get bigger. I just saw what happened to the system. "