Bitcoin and Ethereum prices rise after us CPI falls below expectations
Bitcoin (BTC) and Ethereum (ETH), the leading currencies, are showing signs of renewed optimism with significant price gains over the past 24 hours.
The bullish trend remains active despite the continued crash in cryptocurrency markets as the world’s largest crypto exchange, Binance, undergoes a “stress test” and sees massive net withdrawals in a day.
However, the bullish momentum arose after the US Consumer Price Index (CPI) report was released on November 13, giving investors hope of an economic recovery that would boost stock prices and consequently support cryptocurrency values.
Prices rose less than forecast in November, signaling the end of the rampant inflation that had gripped the economy. Against expectations of 0.3% and 7.3%, the CPI rose just 0.1% from last month and 7.1% from a year earlier.
While the forecasts of 0.3% and 6.1%, the core CPI increased by 0.2% in the month and 6% annually. In addition, stocks rose higher after the announcement as investors hunted for signs that spurious inflation is easing.
A gain of 103.60 points, or 0.3%, lifted the Dow Jones Industrial Average to 34,108.64. At 4,019.65, the S&P 500 gained 0.73%. Up 1.01% to 11,256.81, the Nasdaq Composite. Not just the stock market, the global crypto market cap also increased by almost 3% to $870.53 billion.
Bitcoin (BTC) and Ethereum (ETH) prices are rising
According to the data from CoinMarketcap, the two largest cryptocurrencies on the market, Bitcoin and Ethereum, have both experienced significant gains of 3.70% and 4.52%, respectively, in the last 24 hours.
The data shows that Bitcoin(BTC) marked a daily high of $17,930.09 on December 13, just shy of $18,000, which was last seen in early November. However, it is currently trading at $17,803.14.
The key resistance level for Bitcoin is estimated to be $20,000 if the bulls continue to push the price up. On the flip side, if the bulls are unable to sustain this run, it is expected to fall to a low of $16,000 again.
Coinmarketcap’s data also shows that the BTC market capitalization has increased by more than 3.60% in the last day, and the 24-hour trading volume has seen a significant increase of approximately 35.01%.
Coming to Ethereum, the token is currently trading at $1,322.73 with a weekly gain of around 7.62%. The token marks yesterday’s high of $1,341.44, which was also last seen on November 10.
Along with the market cap of ETH rising by 4.37%, the token’s 24-hour trading volume jumped by around 65.06%. Nevertheless, Ethereum is expected to meet its key barrier near $1,500; otherwise it will drop to $1200.
In addition, a number of altcoins had their names listed in today’s list of daily gains, with notable gains in the last 24 hours, including Polygon (MATIC) by almost 4%, Polkadot (DOT) by 4.33%, Litecoin (LTC) by 4 ,16% and many others.
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