Bitcoin exceeds $25,000 for the first time since June during a crypto rally, riding a momentum wave from a lower-than-expected US inflation and the advancement towards Ethereum’s big upgrade.
Bitcoin Exceeds $25,000 for the First Time Since June During A Crypto Rally
On Sunday, the biggest cryptocurrency increased by as much as 2.2% to $25,031, its highest level since June 13. As of 6 a.m. New York time, it was trading at about $24,750, up for the fifth day in a row due to US consumer-price index data that came in below forecasts.
Ether increased by as much as 2% to $2,030.50 after surpassing $2,000 on Saturday for the first time since May 31 amid hope that its blockchain’s eagerly awaited software upgrade known as the Merge will be completed.
Sean Farrell, a Fundstrat digital-asset strategist said on Friday:
“The next CPI print will be released a mere two days before the Merge, at which point we expect a lot of pre-event momentum to be baked into the market,”
“Long and medium-term investors should look to use any dips as buying opportunities.”
Crypto Has Suffered This Year
Crypto suffered throughout the first half of the year as the Federal Reserve raised rates to battle persistently high inflation, resulting in price drops of more than 50% for Bitcoin, Ether, and other tokens.
Risk assets like the Nasdaq 100 Index have gained value as a result of US inflation data coming in below expectations over the past week, which may pave the way for the Fed to act less aggressively in tightening monetary policy. This has also helped cryptocurrency, which has been closely correlated with the gauge of that stock for months, gain value.
“Beyond increased derivatives volumes, we also speculate that crypto-native investors may start putting on more risk,” – Farrell stated.
The Merge Is Coming
The Ethereum blockchain’s Merge is now anticipated to occur around September 15, according to network co-founder Vitalik Buterin, who announced this following the network’s last test stage known as Goerli a few days ago.
The Merge signifies a shift away from the proof-of-work technique of mining blocks and toward the proof-of-stake approach for creating new Ether tokens and validating transactions.
Additionally, according to Genesis Global Trading, some investors are positioning themselves to perhaps profit from a future fork that would maintain proof-of-work Ether.
“Ether is currently being driven by new fundamentals (the post-Merge tokenomics), a speculative element (the ETH PoW fork, about which much is still unknown) as well as by overall macro sentiment,” – noted Noelle Acheson and Willis Croft, Genesis strategists.
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