Bitcoin above $19,000 as crypto market cap approaches $1T

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Neither the author, Tim Fries, nor this website, The Tokenist, provides financial advice. Please review our website policy before making any financial decisions.

Bitcoin and Ether held onto their Thursday gains on Friday, taking the global crypto market capitalization to its highest level since the collapse of FTX. The rally comes after new CPI data showed inflation fell to 6.5% in December from 7.1% a month earlier.

Global Crypto Market Capitalization at Highest Level Since FTX Crash

Bitcoin (BTC) continues to hover around the $19,000 level after recently breaking it. The world’s second-largest cryptocurrency, Ether (ETH), also held onto its gains after the global crypto market hit its highest level since November. The two cryptocurrencies are currently trading at $18,855 and $1,404.70, respectively.

Altcoins like Solana (ADA) and Dogecoin (DOGE) are also in the green, up 0.75% and 0.37%, respectively. Conversely, Cardano (ADA) and Binance Coin (BNB) are down slightly over the past 24 hours. However, both coins have seen significant gains over the past week, up over 21% and 11%.

The latest crypto rally pushed the global crypto market cap to $909.58 billion from $851 billion last week. This is the highest level since the collapse of FTX in early November.

Meanwhile, crypto stocks have seen mixed performance over the past 24 hours. Coinbase, the world’s second-largest crypto exchange, is down nearly 2.9% in premarket trading, while shares of Silvergate Capitals rose 1.8%. Shares of the company plunged more than 40% last week after the bank sold assets at a significant loss to cover about $8.1 billion in withdrawals. Shares of Michael Saylors MicroStrategy were also down more than 2% pre-opening Friday.

Cooling inflation is the likely reason for the crypto rally

The jump in the crypto market follows the latest CPI print, which showed that the annual inflation rate in the United States fell for the sixth consecutive month in December. The reading was in line with economists’ estimates.

Cooler inflation suggests that the Federal Reserve’s series of giant interest rate hikes is bearing fruit. However, it remains unclear whether the US central bank plans to significantly slow short-term rate hikes as it attempts to bring inflation down to 2%.

Meanwhile, the robust labor market continues to support the US economy. The unemployment rate fell last week to 3.5%, its lowest level in 53 years, although some companies are still struggling to hire new employees.

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About the Author

Tim Fries is the co-founder of The Tokenist. He has a B.Sc. in Mechanical Engineering from the University of Michigan and an MBA from the University of Chicago Booth School of Business. Tim was a senior partner on the investment team in the US Private Equity division of RW Baird and is also a co-founder of Protective Technologies Capital, an investment firm specializing in detection, protection and control solutions.

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