With a gain of 39.4% this month, Bitcoin is closing out its best month since a 40% rally in October 2021 and its best January since 2013.

Currently changing hands at $22,910, bitcoin (BTC-USD) has been trading over the past week at its highest level since August of last year. The largest cryptocurrency hasn’t given holders such an uplifting January in a decade.

“We started January off with some explosive price action the week of December’s CPI print,” said Christopher Newhouse, options trader with crypto market maker GSR.

From Newhouse’s perspective, buyer side demand from institutional takers — whether macro driven traders or hedge funds — returned in the first two weeks of the month, which sparked initial short seller liquidations.

In the 12 days following December’s inflation report released on Jan. 12, $1.3 billion worth of short positions on bitcoin were liquidated, or $611 million as net of long positions, according to crypto derivatives aggregator CoinGlass. Over the past week, the trend has reversed with $331 million in long positions liquidated, or $108 million net of short positions.

Between January 10 and 20, which is when bitcoin saw its largest moves higher, speculation-driven momentum traders returned to the market, spearheading bitcoin breaking out from a range of between $15,700 and $18,000.

“Bitcoin’s pushes above $20,000 and $22,000 both happened on Fridays as dealers had large amounts of negative exposure and selling towards the end of U.S. hours…