Bitcoin prolonged its rally on Wednesday, trading slightly below $100,000 after one other encouraging inflation report fueled investor risk appetite.
According to Coin Metrics, the worth of the flagship cryptocurrency was last up greater than 3% at $99,444.43, representing a 2-day gain of about 7%.
The CoinDesk 20 index, which measures the broader cryptocurrency market, rose 6%.
According to Wednesday's CPI data, Bitcoin is nearing $100,000
Shares of Coinbase increased by 6%. Bitcoin proxies Microstrategy And Mara Holdings Each was up about 4%.
Wednesday's move followed the discharge of the December consumer price index, which showed core inflation unexpectedly slowed in December. A day earlier, the market recorded one other positive inflation reading within the producer price index, showing that wholesale prices rose lower than expected in December.
Crypto's post-election rally fizzled out by the tip of 2024 after Federal Reserve Chairman Jerome Powell issued an inflation warning on December 18, and Bitcoin suffered even greater losses last week as an increase in bond yields prompted investors to to dump growth-oriented risk investments. This Monday, Bitcoin briefly fell below $90,000.
Bitcoin price has tracked the stock market in recent weeks, partly attributable to the recognition of Bitcoin ETFs, which has led to the asset's institutionalization. Bitcoin's correlation with the S&P 500 has increased over the past week, while its correlation with gold has fallen sharply since late December.
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