Bitcoin rose to its highest level in over a month on Thursday as traders gambled on a slowing of US inflation and absorbed the news that attorneys for collapsed crypto exchange FTX had discovered billions of dollars in assets.
For the first time since December 14, the world’s largest digital currency has risen beyond $18,000, boosting in value by nearly 4% in the previous 24 hours. According to CoinMetrics, the price of bitcoin was recently seen at $18,232.36.
Inflation figures from the United States released on Thursday indicated a slight decline. The consumer price index fell 0.1% month on month in December, as predicted by Dow Jones.
However, prices grew 6.5% year over year. This was down from a 7.1% increase in November and much below the highest rate of 9.1% in June. Investors are hoping that the drop would put pressure on the Federal Reserve of the United States to reverse interest rate rises.
In a bid to manage skyrocketing inflation, the Fed and other central banks have been hiking interest rates over the last year or two, pushing equities and cryptocurrencies dramatically lower in 2022.
Furthermore, lawyers for the bankrupt crypto exchange FTX announced Wednesday that they had discovered around $5 billion in “liquid” assets, including cash and digital assets. After the crypto exchange crumbled in November, the rebound will come as a great relief to FTX clients.
FTX attorneys cautioned that the $5 billion cache was so large that selling the assets may cause considerable market negative pressure, pushing down their value.
Bitcoin Print Gains 2023
Bitcoin has fallen almost 74% from its all-time high of $68,990 in November 2021. Last year, the cryptocurrency market lost roughly $1.4 trillion in value as traders sold riskier assets, including technology and growth companies.
Crypto-specific concerns, such as the failures of projects and firms like FTX and Terra, also triggered the drop. On the other hand, Bitcoin has begun 2023 on a high note, with its price gradually growing over the previous 12 days.
This month, Bitcoin’s value has risen steadily, adding about 12.02% to its worth. However, it was still 73.71% lower than its all-time high of $68,990 in November 2021. The sharp drop in value might be attributed to the acts of huge holders, or “whales,” who make individual trading choices.
However, according to CoinMarketcap statistics, BTC achieved a daily high of $19000 today and is presently trading at $18,860.43, up around 7.71% from the previous day and up 12.02% in the last seven days.
In addition, the market is currently bullish, with Bitcoin’s trading volume increasing by roughly 100% in the previous 24 hours. The rise in bitcoin prices boosted the value of other digital currencies. The second-largest coin, ether, gained nearly 6.15% to $1,435.78, while Binance’s BNB token gained 4% to $287.