Bitcoin Has Surpassed The $18,000 Mark
Bitcoin rose to its highest price in nearly a month on Thursday as traders bet on curbing US inflation and digested news that lawyers for defunct cryptocurrency exchange FTX had uncovered billions in assets.
Late Wednesday, the world’s largest digital currency surpassed $18,000 for the first time since December 14. It rose in value by about 5,233% in the previous 24 hours. Bitcoin was trading at $18,154.35 on Thursday morning.
The $5 billion stash was so sizable that selling the assets could significantly impact market volatility, lowering their value. On Thursday, American inflation data should ease. Dow Jones economists predict that the consumer price index will fall 0.1% month in December.
Despite falling from 7.1% in November and well below the 9.112% peak rate in June, inflation should still rise by 6.5% annually. Investors are hoping the decline will pressure the U.S. Fed to cut interest rates.
The Fed has been increasing interest rates over the past year to combat rising inflation. However, this will result in significant price declines for stocks and cryptocurrencies in 2022.
What Does the Future Hold For Bitcoin
Bitcoin was down roughly 74% from its all-time high of $68,990 in November 2021. Last year, the cryptocurrency market lost nearly $1.4 trillion as traders fled risky assets such as technology and growth stocks. Bitcoin and the broader digital currency market have also fallen, indicating an increasing correlation with major stock indices such as the Nasdaq Composite. The rise in bitcoin prices on Thursday boosted the value of other digital currencies. The second-largest coin, ether, gained nearly 5% to $1,397.78, while Binance’s BNB token gained 3% to $283.
The price of bitcoin could drop below $17,000 due to this or other negative cryptocurrency news, setting the stage for further declines and a potential fall of the digital asset between $12,000 and $14,000.
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