The cryptocurrency market has moved higher in recent hours as inflation data was released for the United States. Inflation came up cooler than expected as it expanded 0% on a month-to-month basis. This has created a short rally in traditional financial markets and the crypto industry. This is UseTheBitcoin’s market update.
Ethereum Surpasses $1,925
According to data shared by CoinGecko, Ethereum surpassed $1,925 for the first time since June 2022. This makes Ethereum one of the best performing digital currencies during this period.
Let’s not forget that the Ethereum network is expected to become a Proof-of-Stake (PoS) blockchain in the near future. This has also pushed the price of ETH higher as the network is also expected to become deflationary in the near future. This time, Ethereum is guiding the market despite being the second-largest virtual currency in terms of market valuation.
Bitcoin Gets Closer to $25,000
Additionally, Bitcoin has also gotten very close to $25,000 in the last 24 hours. Indeed, the coin surged all the way up to $24,930. This shows that there is a clear upward trend in the market that started two months ago.
Inflation data has been positive for the market as it came lower than expected. This has pushed traditional markets higher and allowed Bitcoin to strengthen its move higher and get far from the $20,000 psychological level.
It is also worth pointing out that the dollar index has also moved down by over 1% over the last 24 hours. This is also a reaction from the market to the most recent inflation data. Should the trend on inflation continue to move downwards, we cloud see Bitcoin continue with its move higher.
Quincy Krosby, chief global strategist at LPL Financial said:
“What you are seeing is the market enjoying the possibility of the Fed moving toward a less hawkish, not dovish, but slightly less hawkish stance.”
It will be very important to see how the market will behave in the future and follow very closely inflation data. Furthermore, another thing that we should consider is the fact that gas prices have also fallen in recent weeks. Hence, this has had an impact on CPI data.
Nevertheless, inflation is still there when we consider that inflation has surged above 9% over the last year alone. Other countries have also experienced high inflation rates and this could have an impact on monetary policy across the globe.