Cooldown in US Inflation, Shapella Upgrade Lifts Crypto Market; Bitcoin Nears $30,500, Ether Up 6%
The crypto market continues to gain momentum with leader Bitcoin reaching near $30,500 levels and Ethereum rising over 6%. There are a number of positives for cryptocurrencies. These would be sharp cooling in US inflation, and also Ether’s Shapella upgrade which is set to be released. Globally, the market witnessed strong demand in both value and volume.
The crypto market continues to gain momentum with leader Bitcoin reaching near $30,500 levels and Ethereum rising over 6%. There are a number of positives for cryptocurrencies. These would be sharp cooling in US inflation, and also Ether’s Shapella upgrade which is set to be released. Globally, the market witnessed strong demand in both value and volume.
At the time of writing, on CoinMarketCap, the $1.25 trillion global crypto market was trading up 2.29% on the previous day. Total cryptocurrency volumes zoomed nearly 20% to $48.78 billion over the previous day.
At the time of writing, on CoinMarketCap, the $1.25 trillion global crypto market was trading up 2.29% on the previous day. Total cryptocurrency volumes zoomed nearly 20% to $48.78 billion over the previous day.
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The market’s biggest booster is inflation data. The US CPI for all goods was at 5% at the end of March 2023—which is the lowest since May 2021. It is also better than the Street’s expectations of 5.2%. However, inflation continues to remain above the US Fed’s target levels.
Bitcoin traded near $30,225 up nearly one percent. The crypto has hit an intraday high of $30,462.48 — which is the highest 7-day and also one-month high. The crypto hit a 3-month high of $30,509.08 earlier.
The CoinDCX Research Team previously said that if March CPI will be lower than previous months, which could potentially benefit Bitcoin if the Federal Reserve decides to pause interest rate hikes.
Furthermore, Ethereum, which is the second largest cryptocurrency, traded near $1,982 up 6%.
Both Bitcoin and Ether have recorded around 8% and 6% jumps in 7 days.
Commenting on the latest cryptocurrency performance, Sumit Gupta, Co-Founder and CEO, CoinDCX said: “The ETH Shapella upgrade is important on three counts: security, improved user experience and more control. The upgrade involves making changes to two key layers of the network – the execution layer and the consensus layer. One of the most important changes being introduced – EIP-4895 – is a new mechanism that will improve the security of the Ethereum network. The ETH network will now be more efficient and reliable and provide an improved customer experience.”
Gupta added, “Hopefully this will also inspire other blockchain platforms to make the transition to more sustainable consensus algorithms. This upgrade will enable users to stake, earn ETH rewards distributed automatically, unstake to regain full access to their accounts or restake to start over. After this upgrade, the investor can expect high transaction speed and lower gas tax.”
Meanwhile, Parth Chaturvedi, Crypto Ecosystem Lead, CoinSwitch said, “The long-awaited Shanghai upgrade and US CPI data have hardly affected Bitcoin and Ethereum prices. Despite the expectations of investors for an aggressive response from the markets, BTC continued to trade in the $30k zone and went below the mark several times in the last 24 hours, while ETH is in the $1.9k zone.
In line with Glassnode’s prediction, Chaturvedi added: “We see no selling pressure on ETH, which is up ~1% in the last 24 hours, as of around 8am today. Around half an hour after the Shanghai upgrade was activated, around 285 withdrawals processed for about 5,413 ETH ($10 million worth). In high spirits, investors and blockchain developers have already started mapping out the next steps, i.e. Verge, Purge and Scourge.”
In other news, CoinSwitch stated that Argentina has made an official move in crypto by authorizing the National Securities Commission (CNV) to launch a bitcoin (BTC) index-based futures contract. In addition, El Salvador granted its first license for digital asset providers to BitFinex yesterday. We can expect that such moves will positively affect investor sentiment and increase market results.
Investor sentiment appears to remain strong, he said.
Disclaimer: The views and recommendations above are those of individual analysts or brokerage firms, and not of Mint. We advise investors to check with certified experts before making investment decisions.
