Bitcoin Jumps To Four-month High
By Laxmikant Khanvilkar
Cryptocurrencies market cap reached $1 trillion mark due to perky investor sentiments which got boost from the recent macro data. Analysts are saying that the moderation in inflation, downwards-trending wage and employment data and weaker dollar have relieved markets.
The optimism level shows investors shrugging off the Genesis Global Capital filling Chapter 11 bankruptcy protection. The company has been swept up in the fallout from the collapses of crypto hedge fund Three Arrows Capital last spring and, more recently, crypto exchange giant FTX.
Bitcoin soared past $22,000, its highest level since mid-September, as the broader cryptocurrency market continued its unexpected 2023 rally.
The largest cryptocurrency by market capitalization was recently trading as high as $22,387, up 5.4% over the previous 24 hours.
Ether (ETH) followed a similar path, recently rising 5.2% from Thursday, same time, to $1,640.
BTC has climbed 11% in the past seven days and is up 34% for the year. ETH has jumped 12% over the past week and is up 37% since Dec. 31.
The global crypto market capitalization has surged by 6.29% in the last 24 hours and now stands at $1.04 tn. Trading volume stands at $55.84 bn, a substantial 39.45% increase from the previous day. DeFi is making up 7.11% of the total volume, accounting for $3.97 bn. Stablecoins are dominating the market, with 90.14% of the total volume, aggregating to $50.33 bn. Bitcoin’s dominance has also grown by 0.46%, to 41.89%.
Crypto-related stocks also benefited from the rally. Coinbase (COIN) was recently up 10% while bitcoin miner Marathon Digital Holdings (MARA) surged 9%.
Meanwhile, this week’s larger-than-expected decline in the producer price index (PPI) indicated the U.S. Federal Reserve’s monetary hawkishness has been taming inflation, buoying investors. The CME FedWatch tool currently shows that traders see roughly a 97% chance that the Federal Open Market Committee (FOMC) will raise rates by just 25 basis points (0.25 percentage point) at its next meeting in February – slowing from the 50 basis-point hikes in the December meeting.
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