Bitcoin Rebounds to $18,000: Sharp Rise After US CPI

Various analysts point out that this remarkable increase is due to the fact that $275 million worth of weekly BTC options expire this Friday. and to good data on inflation in December in the United StatesThe CPI fell by six ticks of a percentage point to 6.5% and core inflation by three ticks to 5.7%. For investors, this reading provides proof that The Federal Reserve’s efforts to slow the economy and reduce inflation are yielding the expected results..

“Bitcoin is benefiting from the improvement in risk appetite we are seeing in the broader markets. After several weeks between $16,000 and $17,000, cryptocurrencies were boosted by the jobs report and the resulting risky rally,” says Craig Erlam, senior market analyst at Oanda.

And that’s it, despite the fact that the Fed has repeatedly reiterated its position of keeping interest rates high until 2023.markets continue to expect the Fed central bank to end or reduce rate hikes later this year..

“Despite the fact that most institutional clients think we’re probably going to go into a recession, they don’t seem to be afraid of it,” Morgan Stanley chief investment officer Mike Wilson explained in an interview with CNBC on Tuesday. According to this expert, there is a big disconnect between the position of investors and the real market situation. and warned that the S&P 500 index is vulnerable to a 23% drop to 3,000 points. in the event of such a slowdown.

Wilson also pointed out that there will be a a significant earnings adjustment during the earnings season. which will experience its first test on Friday with the publication of quarterly figures from many American banks.

“If risk appetite remains intact following the inflation report, bitcoin could hit $18,500 again. »says Edward Moya, principal analyst at Oanda. On the other hand, he adds, if “Underlying prices are proving worrisome, bitcoin could pull back to December lows. ».

“As for the cryptocurrencies themselves, the price action continues to consolidate. Trading volume in the cryptocurrency space has fallen to a corrective level. This indicates that traders are unwilling to participate unless there is a clear upward trend.“, emphasizes Naeem Aslam, who believes that in general, optimism prevails in the market. “Traders are optimistic because there are fewer bad actors involved in this space than a year ago.. We continue to see bad actors being cleaned out of their space, which is definitely a positive for the future of this industry,” he adds.

In this regard, FTX announced that it has recovered more than $5 billion in cash and cryptoassets. which it will use to pay its creditors, one of the company’s lawyers confirmed on Wednesday.

“We located over $5 billion in cash, liquid cryptocurrency and liquid investment securities,” FTX attorney Andy Dietderich told a Delaware bankruptcy judge at the start of the hearing. Earlier in the day.

On another side, Binance has announced that it will hire around 700 workers after receiving the green light from Sweden. to operate in the Nordic country. The situation of the world’s largest stock exchange contrasts sharply with that of the European Union. Coinbase, which recently announced that it will be making a major job cut. to reduce operating costs.

The American subsidiary of Binance has also received the green light from the American courts to buy the assets of the bankrupt company Voyager Digital for 1 billion dollars. It should be recalled that the United States is investigating Changpeng Zhao’s platform for possible money laundering on American soil.

In the rest of the market, general increases. Binance (BNB), ripple (XRP), cardano (ADA), dogecoin (DOGE) and polygon (MATIC) are up more than 2%. Polkadot (DOT) is one of the tokens that rose the most this Thursday, adding over 4% and reaching over $5.