Bitcoin crosses $21k, rises over 11% in 24 hours
The market leader in cryptocurrencies, Bitcoin, experienced a significant uptick on Friday, rising more than 11% in a single day. The US dollar has been weakening since the beginning of this year, which has kept other currencies under pressure and caused the rally. Investors also took a break from worries about the US Federal Reserve’s potential for a more aggressive monetary policy. Next week’s scheduled US inflation data will provide more detail regarding the Fed’s rate-hike trend’s future intensity.
With a market cap of more than $405.75 billion, Bitcoin traded at $21,192.54, up 10.37% on a broad-based buying sentiment. The coin has increased by more than 11% so far today, reaching a 24-hour high of $21,279.27. Ethereum, its rival, gained momentum as well. It was increasing by about 6% as it traded at about $1,710. The market value of the coin is about $211.62 billion.
The US dollar has fallen as much as 1% against the pound and euro on the interbank forex market. In the second half of this week, the dollar began to decline from its two-decade peak.
On Tuesday of the following week, the US is scheduled to release its August inflation data, which is likely to shed more light on the US Federal Reserve’s hawkish stance toward maintaining high-interest rates to combat inflation at the expense of economic growth.
The US consumer price index declined from a four-decade high of 9.1% in June of this year to a better-than-expected 8.5% in July 2022. James Knightley, the chief international economist at ING, stated in his note on Thursday that a third consecutive 75 bp increase in interest rates on September 21 is clearly supported by Jerome Powell’s remarks at the Cato Institute’s conference on monetary policy today.
In light of the US inflation data, Bitcoin performance has been correlated with US stock performance. In particular, the deep depression brought on by macroeconomic uncertainties since mid-May has increased the correlation between Bitcoin and stocks.