Bitcoin has $18,000 on its radar
After weeks of consolidation, Bitcoin – the largest cryptocurrency by market capitalization – and the broader cryptocurrency market witnessed a short-term rally in response to consumer price index data that beat expectations.
The US Department of Labor reported that the CPI rose barely 0.1% between October and November. Last month, the inflation measure registered a score of 7.1% compared to an estimated 7.3%.
Bitcoin is approaching $18K
The increase has brought the flagship cryptocurrency Bitcoin closer to the $18,000 level. At the time of writing, it is trading at $17,778 after a 24-hour gain of about 5%, data from market aggregator Coingecko shows.
In turn, Ethereum’s price has risen 4% in the past week to $1,321, maintaining a similar trajectory.
Ahead of Tuesday’s stock market trading, the shares also traded higher. Following the release of the CPI data, US futures rose. Futures on the Dow Jones Industrial Average rose 780 points, or 2.4%.
S&P 500 and Nasdaq 100 futures rose 2.9% and nearly 4%, respectively, in response to inflation data that beat expectations.
Bitcoin has also hit a new four-week high as a result of the surge, with investors closely watching the asset’s price trajectory for a bottom that is likely to pave the way for another price flare-up.
BTC total market cap at $342 billion on the daily chart | Chart: TradingView.com
About Sam Bankman-Fried Arrest and Optimistic Forecast for BTC
On Tuesday, Kitco News analyst Jim Wycoff noted, based on Bitcoin’s recent price momentum, that the leading cryptocurrency may have initiated a “bullish upside breakout.”
According to Wycoff, today’s price action appears to have marked the beginning of a strong upside breakout from Bitcoin’s sideways trading area on the daily bar chart, indicating that a price uptrend will emerge.
Wycoff noted that Bitcoin bulls have amassed a near-term technical advantage after a battle of near-equal proportions.
This year has witnessed an extended crypto winter that has yet to show signs of thawing. If the LUNC decline wasn’t dire enough, the FTX debacle was the proverbial final nail in the coffin that the broader crypto market required to seal their current negative sentiment.
Nevertheless, as the year 2022 draws to a close, the cryptocurrency market is showing indications of fresh energy, allowing investors to usher in the new year on a positive note.
Moreover, the arrest and detention of former FTX chief executive Sam Bankman-Fried may have been the main reason to motivate the crypto-enthusiasts to increase the Bitcion price again.
As Bitcoinist reported today, the Bahamian government recently denied Bankman-Fried bail, citing “significant flight risk.”
Meanwhile, Bankman-Fried and his legal advisers have indicated they oppose his extradition to the United States. His extradition hearing is set for February 8, 2023.
