Despite the consumer price index rising by 7%, bitcoin and ether prices climbed strongly throughout the US trading day.
It was the biggest weekly market flow for Bitcoin, and most significant altcoins saw a jump as well. As purchasers try to reverse a short-term downturn, the sell-off in BTC appears weary.
Last week’s disastrous start to the year saw Bitcoin (BTC) rise to its highest price in a week.
After falling below $40,000 in September, Bitcoin was trading about $43,900 at publication. So far in 2022, the price of bitcoin has fallen by a total of 5.2%.
According to the US Labor Department, the Consumer Price Index, the primary inflation indicator, rose 7% annually in December. As a result, it boosted the bitcoin market.
This heightened concern about inflation pushed the Fed to tighten monetary policy and slow the economy further.
Since the coronavirus struck in March 2020, more investors are turning to bitcoin to protect themselves against rapid inflation.
According to cryptocurrency industry researcher Mati Greenspan, new numbers may surprise a victory lap. On the other hand, investors appear to have loosened their grip on the Federal Reserve.
Even as concerns about a more aggressive Federal Reserve policy on inflation faded, U.S. markets closed higher, according to Reuters.
Wednesday saw a record-breaking high for the Near Protocol’s NEAR token. So, the more activity it attracts, the more undervalued the up-and-coming blockchain is.
For example, some analysts worry about NEAR’s “frothiness,” while others worry about the “packed” transaction in Fantom’s FTM.
Ether (ETH), the second-largest cryptocurrency by market cap, has climbed 4.2 percent in the last day to roughly $3,370.
As a result of oversold indications, Bitcoin (BTC) buyers held support at $40,000.
The $45,000-$48,000 resistance zones restrict the short-term downtrend. It limits Upside potential. For the time being, the lack of positive momentum signs restrain price rises.