Crypto rise reason: Why crypto is rising today (15 July) after US CPI inflation data?bit2main
The global cryptocurrency market cap has increased nearly 5% over the last day to $934 billion. The prices of several top cryptocurrencies, including Bitcoin and Ethereum, have also jumped in 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, prices of Solana, XRP, Avalanche and Polygon (Matic ) have jumped up to 10% in the last 24 hours, according to CoinMarketCap data.
The rising crypto 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 surge in current crypto prices today may be attributed to the possibility of a 0.75 basis point interest rate hike in the US, instead of 100 basis points, to tackle high inflation.
The US Federal Reserve Governor Christopher Waller said on Thursday that he supported a 0.75 basis point increase in interest rate.
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Will crypto prices rise further?
Today’s surge in cryptocurrency prices may be short-lived as the overall market sentiment remains in the “Extreme Fear” zone, according to the Crypto Fear & Greed Index. Moreover, the interest rate hike in the US may be higher to tame inflation.
Experts say the markets would have to sustain the momentum to regain investors’ trust and rise further.
“Bitcoin has bounced off the US$20,000 mark after bulls pushed the coin up. If buyers can hold BTC at the current level, we might see it testing the US$21,000 level soon. The second largest cryptocurrency, Ethereum witnessed a rise of nearly 10% outperforming BTC after its Shadow Fork 9 went live taking the project one step ahead toward the merge,” Edul Patel Co-Founder and CEO of Mudrex crypto investing platform, said.
“Bitcoin gained just over 2% yesterday edging close to the $21,000 level. The market sentiment is seemingly diving deeper into the fear zone. The daily chart for BTC continues to traverse within a descending channel pattern,” analysts at WazirX Trade Desk said in a note shared with FE.com.
“Meanwhile, the daily MACD is gaining towards the zero level, an indication that the bull market is just around the corner. The next resistance level for BTC is expected at $32,300 and an immediate support level is expected at $17,700,” they added.
(Cryptos and other virtual digital assets are unregulated in India. They are considered extremely risky for investment. Please consult your financial advisor before making any investment decision)