Bitcoin Bounces Above $19k Post U.S. CPI Data
By Laxmikant Khanvilkar
Bitcoin (BTC) surged beyond $19,000, an increase of 7% during the last 24 hours and its highest mark since its dip in early November due to FTX crypto exchange issues, as the U.S. December inflation number was in line with the street expectations lifted investor sentiment.
Inflation slowed to 6.5% in December, as expected, from 7.1% in November. This lower pace of inflation will likely allow the Federal Reserve to reduce its rate hikes from 50 basis points per meeting in December (and 75 prior to that).
The global crypto market capitalization has grown by 2.90%, reaching a total of $905.94 billion. Over the last 24 hours, the crypto market’s total volume has increased by 59.52% to $62.38 billion. Decentralized finance (DeFi) now accounts for 6.64% of the total crypto market volume with $4.14 billion. Stablecoins make up 91.25% of the total crypto market 24-hour volume, amounting to $56.92 billion. Bitcoin’s dominance has risen by 0.82%, currently standing at 40.09%.
BTC is up 14% this year following a 63% drop in 2022.
Meanwhile, Coinbase shares rose 4%, having gained 35% overall this year. Marathon Digital rallied 16%, while rival Riot Platforms and Hut 8 Mining stocks have posted similar gains of 83% so far. Grayscale Bitcoin Trust, which experienced a near 50% discount to net asset value (NAV) at the end of 2022, saw a 12% surge for the day and a reduction of its discount to NAV to 36.4%. MicroStrategy, a software company that holds over 130,000 BTC, saw a 5.5% rise on the day and 42% for the year.
All in all, Thursday’s session saw boost in risky assets valuations. Analyst believe inflation will continue to soften during the first half of 2023, which should give the Fed room to throttle back on its monetary-tightening policy.
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