Bitcoin reclaimed the $23,000 mark on February 1, 2023, as cryptocurrency markets posted broad gains in anticipation of the Federal Reserve’s latest interest rate decision. The rally came amid growing optimism that the central bank would further slow the pace of its tightening cycle, with altcoins particularly benefiting from the improved risk sentiment.
TL;DR
- Bitcoin surpassed $23,000, trading at approximately $23,723 by day’s end per CoinMarketCap
- Ethereum held steady near $1,641, posting a modest 0.9% daily gain
- Cardano (ADA) surged 4%, leading altcoin performers on the day
- Total crypto market capitalization stood at roughly $1.05 trillion
- BTC 24-hour trading volume exceeded $26.6 billion, signaling strong market participation
Bitcoin Consolidates Above Key Level
Bitcoin’s push above $23,000 represented a significant psychological milestone for the largest cryptocurrency, which had spent much of January 2023 climbing back from its post-FTX collapse lows near $16,500. The recovery gathered momentum throughout the month, with BTC posting consecutive weekly gains that restored investor confidence in the market’s underlying strength.
According to CoinMarketCap’s historical snapshot for February 1, 2023, Bitcoin’s market capitalization stood at approximately $457.3 billion with a circulating supply of 19,278,981 BTC. The 24-hour trading volume reached $26.68 billion, reflecting robust market participation. BTC posted a 2.53% gain over 24 hours and a 2.62% increase over the trailing seven-day period.
Ethereum and Altcoins Join the Rally
Ethereum maintained its position above $1,600, trading at $1,641.79 with a market cap of approximately $200.9 billion. ETH saw 24-hour volume of $8.11 billion and posted gains of 3.48% over 24 hours and 1.87% over the week. The steady performance suggested that the market’s recovery was broad-based rather than concentrated in Bitcoin alone.
Among altcoins, Cardano (ADA) stood out as a notable outperformer, rallying 4% on the day. The gains for ADA came amid renewed interest in proof-of-stake networks and growing developer activity on the Cardano blockchain. Meanwhile, Solana (SOL) bucked the positive trend, experiencing a slight decline as some traders rotated profits into other assets.
Macro Backdrop Drives Sentiment
The crypto market’s upward trajectory on February 1 was closely tied to macroeconomic developments. Financial markets broadly anticipated that the Federal Reserve would deliver a 25 basis point rate hike — a significant downshift from the 75 basis point increases that characterized much of 2022. The ISM Manufacturing PMI data released the same day showed softening economic conditions, which traders interpreted as supportive of a less hawkish Fed stance going forward.
The connection between monetary policy and crypto valuations has become increasingly pronounced. When the Fed raised rates aggressively throughout 2022, Bitcoin and other digital assets suffered as higher borrowing costs reduced appetite for risk. The prospect of slower rate increases — and eventually rate cuts — has provided a tailwind for the market’s recovery in early 2023.
Stablecoins Reflect Market Conditions
Stablecoins maintained their pegs with minimal deviation on February 1, with Tether (USDT) holding a market cap of approximately $67.8 billion and USD Coin (USDC) at $42.3 billion. The stability of these key market infrastructure tokens — both trading at virtually exactly $1.00 — signaled healthy market conditions without the stress that had characterized periods of the 2022 bear market, particularly during the Terra/Luna and FTX collapses.
BNB, the native token of the Binance ecosystem, also posted modest gains of 1.64% over 24 hours, trading at $317.47 with a market capitalization of approximately $50.1 billion. The token’s steady performance reflected continued confidence in the world’s largest cryptocurrency exchange despite ongoing regulatory scrutiny.
Why This Matters
Bitcoin’s recapture of $23,000 and the broad altcoin rally on February 1 represent more than just a single day of gains — they reflect a shift in market narrative. After months dominated by bankruptcies, regulatory crackdowns, and macro headwinds, the early 2023 recovery suggests that the worst of the bear market may be over. The interplay between Fed policy and crypto prices has become the dominant market narrative, and the slowing pace of rate hikes creates a more favorable environment for risk assets. For investors, the key question is whether this recovery has legs, or whether it’s merely a bear market rally that will fade when the next macro shock arrives.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.
cardano up 4 percent while total market cap hits 1.05t shows the rally was spreading beyond btc
btc back over 23k at 23723 after ftx lows near 16500 in just a few months. fastest sentiment flip ive seen
BTC at 23K felt like a fantasy in Dec 2022. Cardano leading altcoin gains at 4% is hilarious in hindsight given where ADA went
Ada Vance ADA at 4% leading alts aged terribly. the token is down 80% from those levels while BTC basically doubled
26.6B in BTC volume ahead of a Fed decision. markets were desperate for a dovish signal and priced it in before Powell even spoke
everyone was front-running the Fed pivot in Feb 2023. market rallied 50% before Powell even paused. the smart money was already positioned
rate_cutter the market rallying 50 percent before Powell paused is the ultimate proof that tradfi and crypto both front-run the Fed. the pivot was priced in 3 months before it happened
Cardano leading at 4% while btc did all the heavy lifting to get above 23k, classic ada behavior
ada bagholders finally got a green candle to post about lol
ADA pumping 4% on zero fundamentals while BTC retook $23K. some things in crypto never change lol
lol exactly. 4% on zero utility while btc did all the work to get back above 23K
4% on ADA while BTC did the heavy lifting to $23K is the definition of beta. ada pumps in a vacuum without BTC are not happening
ada_realist_ ADA pumping 4% is honestly embarrassing given the market cap it had. ETH did 0.9% on the day and actually has developers. cardano just rides BTC beta with extra steps
Ada V. ADA at 4% while ETH did 0.9% and has 100x the dev activity. cardano is the ultimate beta play with extra steps
$26.6B daily volume post-FTX is genuinely impressive. people called the bottom way too early but the data was already there
$26.6B daily volume two months after FTX collapse showed the market was already pricing in recovery. most people were too busy calling for $10K to notice
Wei Park is right. $26.6B volume two months after FTX collapse showed the market had already moved on. most people were still calling for $12K
Wei Park calling it. most people were still waiting for 12K while the volume profile said otherwise. ADA at 4 percent was just beta plays on the BTC recovery
wei calling it. FTX panic was priced in by january and the volume confirmed it. anyone still bearish at 23K was just fighting the tape
marco_polo_ 26.6B volume two months after FTX collapse was the loudest signal nobody listened to. everyone was calling for 12K while spot buyers were absorbing everything
marco_polo_ FTX panic was fully priced in by january. 26.6B daily volume at 23K two months after the collapse told you the floor was in
Wei Park 26.6B volume two months after FTX was the signal. but lets be honest most of that volume was people panic buying the bounce not smart money accumulating
ADA surging 4 percent while doing zero on-chain volume was peak 2023 altcoin season. BTC does all the work and every alt pumps like they built something. good times