Bitcoin rises to highest levels in a month as investors bet on U.S inflation data
Bitcoin’s price rose by 5% to more than $18,000 for the first time in a month on Thursday January 11, 2023.
According to information from the Binance Exchange Bitcoin, was trading for $18.1K on Thursday morning.
The increase came as traders bet on a slowdown in U.S. inflation, even as the discovery by FTX’s lawyers of billions of dollars’ worth of assets also influenced the market’s sentiments.
More details: It is anticipated that the release of U.S. inflation data would reveal a slowing of inflation. According to economists surveyed by Dow Jones, the consumer price index will have decreased by 0.1% from one month to the next in December.
Although this would be less than the 7.1% increase in November and much below the 9.1% peak rate in June, inflation is still predicted to increase by 6.5% year over year.
Investors are hoping that the decrease will encourage the U.S. Federal Reserve to cut interest rates.
In a bid to rein in surging inflation, the Fed and other central banks have been hiking interest rates over the past year or so. These actions caused equities and cryptocurrencies to fall substantially in 2022. The expectation is that the central bank will reduce interest rates to ease some of the burdens.
Bitcoin’s recovery: Bitcoin has been in a downtrend for longer than a year, which is typical of a bear market in the digital asset market.
However, the price of Bitcoin has been recovering lately, suggesting that the market is taking the news well and that the selling pressure is being absorbed.
This may also indicate that the market believes the worst is over for digital assets and that the majority of the bad news is already priced in.
In addition, Attorneys for the defunct cryptocurrency exchange FTX said on Wednesday that they discovered about $5 billion in “liquid” assets, including cash and digital assets.
However, FTX lawyers cautioned that the $5 billion cache was so large that selling the assets could result in severe market negative pressure, which would lower their worth.
Originally Posted By Nairametrics