Bitcoin has begun 2023 on a positive note, with the price of the world’s largest digital token up roughly 26% since the start of January.

On Saturday, bitcoin’s price rose above $21,000 per coin for the first time since Nov. 7.

It’s still a far cry from the $68,990 record high bitcoin notched in Nov. 2021. But it has given market players cause for some optimism.

The month-to-date rally follows a grim 2022, which saw major insolvencies and scandals in the crypto industry, including the collapse of FTX, and a sharp pullback in the broader market linked to central bank actions.

Analysts say that a number of factors are behind bitcoin’s New Year rise, including an increased probability of interest rates being lowered, as well as purchases by large buyers known as “whales.”

Inflation is cooling down, and economic indicators suggest slowing U.S. economic activity. That’s made traders optimistic the Federal Reserve could reverse, or at least soften, its rate hiking strategy.

Last week, fresh U.S. inflation data showed a modest retreat, with the consumer price index decreasing 0.1% in December on a monthly basis, in line with Dow Jones estimates.

“Bitcoin looks to have recoupled with macro data as investors…