Reason for crypto increase: Why is crypto increasing today (July 15) according to US CPI inflation data?
The global market value of cryptocurrency has increased by almost 5% in the last day to 934 billion dollars. The prices of several top cryptocurrencies, including Bitcoin and Ethereum, have also jumped over the last 24 hours.
At the time of writing, Bitcoin was trading at $ 20,798 while the price of Ethereum (ETH) was $ 1209. Among other top tokens, the prices of Solana, XRP, Avalanche and Polygon (Matic) have jumped up to 10% in the last 24 hours, according to CoinMarketCap data.
The rising cryptocurrency prices may have come as a pleasant surprise to crypto enthusiasts, especially after the CPI-based inflation data in the US reached a new 40-year high of 9.1%.
Part of the reason behind the increase in current cryptocurrencies can be attributed to the possibility of an interest rate increase of 0.75 basis points in the US, instead of 100 basis points, to cope with high inflation.
The US Federal Reserve Governor Christopher Waller said on Thursday that he supports an interest rate increase of 0.75 basis points.
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Will cryptocurrencies rise further?
Today’s rise in cryptocurrency prices may be short-lived as general market sentiment remains in the “Extreme Fear” zone, according to the Crypto Fear & Greed Index. In addition, interest rate increases in the US may be higher to curb inflation.
Experts say markets need to maintain momentum to regain investor confidence and rise further.
“Bitcoin has jumped off the $ 20,000 mark after bulls pushed the coin up. If buyers can keep BTC at the current level, we can see that it will soon test the $ 21,000 level. The second largest cryptocurrency, Ethereum, witnessed an increase of almost 10% better than BTC after Shadow Fork 9 went live and took the project one step ahead of the merger, said Edul Patel, co-founder and CEO of Mudrex crypto-investment platform.
“Bitcoin rose just over 2% yesterday, close to the $ 21,000 level. The market sentiment is apparently diving deeper into the fear zone. The daily chart for BTC continues to cross within a declining channel pattern,” analysts at WazirX Trade Desk said in a note shared with FE .com.
“Meanwhile, the daily MACD is rising towards the zero level, an indication that the beef market is just around the corner. The next resistance level for BTC is expected to be $ 32,300 and an immediate support level is expected at $ 17,700,” they added.
