As a result of falling U.S inflation, the price of bitcoin surges beyond $18,000 to reach its highest level in a month.

The price of bitcoin climbed to its highest level in almost a month, as traders bet on a stop in U.S. inflation and as they processed the news that lawyers for the bankrupt cryptocurrency exchange have identified billions of dollars worth of assets. Traders bet on a stop in U.S. inflation as they processed the news that lawyers for the bankrupt cryptocurrency exchange have identified billions of dollars worth of assets.

The value of bitcoin, the most prominent form of digital money in circulation, went beyond $18,000 for the first time since December 14; the price increase was around 4% over the course of the previous day. According to data provided by CoinMetrics, the price of one bitcoin on the most recent exchange where it could be purchased was 18,232.36 dollars.

On Wednesday, attorneys representing the defunct cryptocurrency exchange known as FTX said that they had uncovered around $5 billion in “liquid” assets, which include cash and digital assets. Specifically, the announcement was made that the attorneys had identified the assets. Considering that the cryptocurrency exchange was unable to continue operations in November, customers of FTX are going to be pleasantly surprised by the rebound.

FTX attorneys did, however, issue a warning that the $5 billion cache was so high that selling the assets could generate to severe downward pressure on the market, thus driving down the value of the assets. This warning was issued because the attorneys believed that selling the assets could generate to severe downward pressure on the market.

The cryptocurrency market is experiencing tremendous vibrations as a direct result of the failure of FTX. It’s possible that the agony isn’t over just yet.
The cryptocurrency market is experiencing tremendous vibrations as a direct result of the failure of FTX. It’s possible that the agony isn’t over just yet.

The data for the United States were released on Thursday, and they showed that inflation had reduced marginally. The consumer price index showed a monthly decrease of 0.1% in December, which was consistent with the estimates offered by Dow Jones regarding the direction of the index.

Despite this, there was a 6.5% increase in prices as compared to the previous year. This was a considerable decrease from a peak rate of 9.1% in June, which was seen in June, and a rise of 7.1% in November, which was seen in November. Investors are pinning their hopes on the prospect that the decline will put pressure on the Federal Reserve of the United States to reverse their plan to raise interest rates.

The Federal Reserve and other central banks have been steadily increasing interest rates over the past year or so in an effort to rein in the skyrocketing inflation that has been plaguing the economy. This move was made in an effort to protect the value of the dollar, which has been depreciating against other major currencies in recent years. The value of stocks as well as cryptocurrency experienced a dramatic decline in 2022 as a direct consequence of these rate hikes.

A portion of the pressure that is being placed on risk assets is expected to be relieved as a result of the Federal Reserve of the United States lowering interest rates, as this is currently the expectation that has been placed.

Since it reached an all-time high of $68,990 in November 2021, Bitcoin’s value has decreased by around 74% since that time. The value of the cryptocurrency market dropped by close to $1.4 trillion throughout the course of 2018, as a result of investors selling riskier assets such as technology and growth firms. This caused the value of the market to decline.

CNBC Pro is a resource that provides additional details on topics relating to technology and cryptocurrency.
Morgan Stanley has determined its best choice in the Chinese technology industry and anticipates an increase in value for the investment of more than seventy percent.

Pay close attention to these five events in order to get a feel of the path that the cryptocurrency markets will be traveling on during the year 2023.

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Bitcoin and the bigger market for digital currencies as a whole witnessed a decrease, which may signal an increasing relationship with major stock benchmarks such as the Nasdaq Composite.

Other crypto-specific challenges, like as the failure of projects and companies like FTX and Terra, also had a role in the drop. These challenges contributed to the decline.

On the other hand, Bitcoin has gotten off to a solid start in 2023, with its price having been on an upward trend for the previous 12 days. This trend is expected to continue for the foreseeable future.

“Bitcoin has been in a downtrend for over a year now, which is a standard period of a bear market in crypto,” Vijay Ayyar, vice president of corporate development and international at cryptocurrency exchange Luno, told CNBC in emailed comments on Thursday morning. “Bitcoin has been in a downtrend for over a year now,” Ayyar said. “This is a standard period of a bear market in crypto.” Ayyar stated that there has been a downward trend in the price of bitcoin for more than a year.

Ayyar continued by saying, “We’ve had many unpleasant events occur over the past year, and if one looks at the price reaction to those events, in general it’s been dropping less and less.” “We’ve had many negative events transpire over the past year,” This is a sign that the market is accepting the news pretty well, and as a result, we are heading towards the accumulation stage of the cycle.

One possible explanation of this occurrence states that “this might also signal that the market thinks the worst is over for crypto, and that most negative news is now priced in,” and this is just one possible reading.

The rise in the price of bitcoin that occurred on Thursday worked as a tailwind for the prices of other digital currencies. The price of ether, the second-largest cryptocurrency, rose by more than 5% to reach $1,397.78, and the price of Binance’s BNB token rose by 3% to reach $283.

The cryptocurrency exchange Binance, which had previously pledged $1 billion to a fund aimed at shoring up the industry in the wake of the failure of FTX, has now found itself to be the target of concerns regarding the integrity of its reserves. These concerns stem from the fact that Binance had previously pledged $1 billion to the fund. In December, the auditing firm Mazars, which had been working on the company’s so-called proof of reserves, put a halt to any further cooperation with cryptocurrency companies. Mazars did not specify the reason for this decision.

Binance asserts that it has more than sufficient assets to satisfy its debtors, despite the fact that they are owed money.

 

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