Official data showed that the inflation in the United States had cooled down in December last year, which strengthened the market’s expectations for the Federal Reserve (Fed) to restrain the strength of interest rate hikes, and encouraged Bitcoin to break through 19,000 US dollars in the early morning of this (13th), hitting the highest level since more than two months ago. highest price.
Data from the U.S. Bureau of Labor Statistics showed that the U.S. consumer price index (CPI) increased 6.5% in December from a year ago and was 0.1% lower than in November, in line with market expectations, while another report showed that the U.S. continued to receive unemployment benefits last week The number of people has dropped sharply, and the job market is still hot, which is expected to pave the way for the Fed to slow down the pace of interest rate hikes and ease market concerns.
Bitcoin rose as much as 8.4% to $19,013.30 this morning, breaking through $19,000 for the first time since Nov. 8, according to data from CoinMetrics. The overall cryptocurrency market cap is $943 million, up 5.1% in the past 24 hours.
At press time, Bitcoin was trading at $18,813.64, up 3.07% over the past 24 hours.
Since last year, in an environment where the Federal Reserve has continued to raise interest rates to curb inflation, market investors have been terrified, selling high-risk assets, including technology stocks and cryptocurrencies, and buying relatively stable corporate bonds and U.S. Treasury bonds. invest.
However, Bitcoin is off to a good start in 2023, with today marking its 10th straight day of gains and a year-to-date gain of 14%. Vijay Ayyar, vice president of corporate development and international at cryptocurrency exchange Luno, commented, “Bitcoin has been on a downtrend for over a year now, which is a standard period for a cryptocurrency bear market.” He added,
If you look at the reaction to the many negative events that have occurred in the cryptocurrency market over the past year, in general, it has fallen less and less – which shows how receptive the news is to the market Quite high, the selling pressure is absorbed and we will now enter the hoarding phase.
It could also mean that the market believes that the worst is over for cryptocurrencies, after all the worst news has already been priced in.
Analysts at MICA Research, a cryptocurrency research team, also pointed out that “U.S. inflation is gradually slowing down as energy prices fall. declining numbers.” He went on to say:
This phenomenon will help the Fed stop raising interest rates. Judging from the current situation, the theme of interest rate hikes has come to an end. The market will focus on the financial report week at the end of the month to judge whether the economy is in recession.
