Bitcoin is set for its best January since 2013 on bets that monetary tightening and the crypto-sector crisis are both ebbing. The largest token is up 39% since the turn of the year, a first-month gain bettered only twice before when crypto was in its infancy. Smaller coins like Solana, Axie Infinity and Decentraland have doubled in value, part of a $280 billion January climb in digital assets overall, CoinGecko figures show. Bitcoin retreated 2. 9% to $23,111 as of 10:44 a. m. in New York on Monday amid broad declines in risk assets. TRENDING STORIES See All Premium Canada: Heritage Hindu temple defaced with anti-India g . . . Premium Biden says 'no' to US sending F-16 fighter jets to Ukraine Premium Adani debts enter spotlight as dollar bond coupon deadl . . . Premium Biden team weighs fully cutting off Huawei from US supp . . . The rebound from last year’s deep rout is part of a wider revival in risk appetite on expectations that central banks will slow interest-rate hikes and perhaps even cut borrowing costs later this year as high inflation moderates. The rally in virtual coins has weathered ongoing fallout from the collapse of Sam Bankman-Fried’s FTX exchange — such as the bankruptcy of crypto lender Genesis Global Holdco LLC and a spate of layoffs across the industry. January “feels like a month of new beginnings, with emerging clarity as to bankruptcy proceedings, corporate restructurings and market fundamentals pointing to the bottom being behind us ," wrote Noelle Acheson, author of the “Crypto Is Macro Now" newsletter. Still, there are plenty of skeptics who doubt if the rebound in the likes of crypto and tech stocks will last. One risk is that the soft economic landing markets are hoping for is fanciful because rates must stay higher for longer. The comeback of speculative assets like Bitcoin and the Ark Innovation ETF “will likely reverse" if oil, wages and consumer-price increases shift the “soft landing" narrative temporarily in coming weeks into a “no landing" view, Bank of America Corp. strategists led by Michael Hartnett said last week. Federal Reserve Chair Jerome Powell may also remind investors that officials plan to keep rates elevated for some time. He’s due to speak after an expected downshift by the Fed to a quarter-percentage-point hike this week. MINT PREMIUM See All Premium CXOs may get 9. 1% pay hike, but clawbacks will be strict Premium Unsecured debt tag for govt dues to facilitate IBC rescue Premium Truths & myths of an election budget Premium Old-fashioned emerging market crises aren’t history yet Some corners of global markets are also flashing warnings. For instance, hedge funds have built up the biggest bearish bet on bond futures on record, clashing with the narrative that a peak in rate hikes is near. For now, momentum is king. Rick Bensignor of Bensignor Investment Strategies targeted $25,000 for Bitcoin in a note Monday, a level it last hit in August. This story has been published from a wire agency feed without modifications to the text. Know your inner investor Do you have the nerves of steel or do you get insomniac over your investments? Let’s define your investment approach. Take the test Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates. More Less Topics crypto currency OPEN IN APP.