After more than two weeks of trading below $40,000, Bitcoin finally made a decisive move to reclaim the coveted levels. The entire cryptocurrency market followed suit, as Ether, Coincoin, Caldano, Sollana, Polkadot and many others saw their daily prices rise sharply.

Bitcoin soars $4000

On January 20 and 21, the major cryptocurrency fell below $40,000 for the first time in months. Over the next few weeks, the asset failed to make up most of its losses and even fell to its lowest price since late July, below $33,000.

However, it reportedly started to add some value and challenged $39,000 a few days ago. Initially it was rejected and the shorts pushed it down below $37,000 almost immediately.

But that's where things have changed. Trading between $37,000 and $38,000 yesterday, bitcoin continued its surge, topping $40,000 for the first time in more than two weeks.

It only kept climbing over the next few hours and BTC is now trading at around $41,500. This means that the cryptocurrency has risen by $4,000 since yesterday. As a result, its market capitalization, which fell below $700 billion just a few days ago, is now close to $800 billion.

Bitcoin USD. Source: TradingView Cottage Coins Gaining Big

This usually happens when bitcoin experiences enhanced volatility, and the same is true for cottage coins. Just a few days ago, ethereum was struggling to stay above $2,000. However, the second largest cryptocurrency is now trading above $3,000 after rising 7% daily.

Coincoin, Polkadot, Terra, Avalanche, MATIC and Shiba Inu have also seen double-digit spikes since yesterday. Cardano, Solana, Ripple, Dogecoin, and CRO have seen slightly more modest gains.

As expected, low and mid-cap stocks showed more volatility. Gala leads with a 30% gain, followed by LEO (25%), JUNO (20%), The Sandbox (18%), NEAR Protocol (16%), Mina Protocol (16%), THETA Network (15%) ), Loopring (14%), THORChain (14%), etc. THORChain (14%), etc.

In the end, the cumulative market capitalization of all cryptocurrency assets has increased by about $170 billion since yesterday's lows, reaching more than $1.9 trillion.

Cryptocurrency market overview. Source: Quantify Cryptocurrency Special Offer (Sponsored) Cryptocurrency Free $100 (Exclusive): Use this link to sign up and get your first month of Cryptocurrency Futures for free with $100 and 10% fee (Terms).

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TradingView's cryptocurrency K-line chart.