Bitcoin and Crypto Market Surge – Here’s Why
Bitcoin and Ethereum experienced gains after a short decline as the largest cryptocurrency by market capitalization surged upward on the strength of a short squeeze.
This sudden rise can be attributed to short-selling investors who liquidated some $65 million of Bitcoin, with about $60 million in short positions. The cryptocurrency jumped from yesterday’s low of $22,047 to a high of $24,905, posting a gain of 12.96%.
The recent spike was also driven by a tepid Consumer Price Index that had investors feeling less anxious about the U.S. economy’s future and the Fed’s next monetary policy moves.
Ethereum also enjoyed some upside as it surged past $1,700 before settling slightly below this threshold.
Other major cryptocurrencies turned bright green over the day, with YGG, the token of play-to-earn gaming guild Yield Guild Games, and NEAR, the native crypto of smart contracts platform Near Protocol, each recently rising well over 11%.
In contrast to equity markets, which were less adventurous overall, crypto-related stocks soared, with exchange Coinbase (COIN) and bitcoin miner Marathon Digital Holdings (MARA) increasing 17% and 18%, respectively.
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Business software company MicroStrategy (MSTR), a major BTC holder, recently rose more than 9%.
The Fed has said it wants inflation back in the 2% range. The bank raised interest rates several times since March 2022 to fight inflation.
CME Group analysts predict a more than 90% chance that the Federal Reserve will raise rates by 25 basis points again at the next meeting. United States interest rates are currently at 4.5% to 4.75%, the highest in 15 years. Fed officials have repeatedly indicated they could raise rates to as high as 5% to get inflation back to the central bank’s target range.
Andrey Kunev
Reporter at CoinsPress
Andrey Kunev is a knowledgeable cryptocurrency content creator passionate about the crypto market. With extensive experience in market analysis and investment reporting, Andrey is a valuable asset to the CoinsPress team. As a frequent contributor, he offers insightful and comprehensive coverage of market trends, price fluctuations, and new advancements in cryptocurrency. Whether you're a seasoned investor or just getting started, Andrey's clear and concise writing offers a comprehensive look at the current state of the crypto market and its prospects. Stay up-to-date with CoinsPress's expert analysis and commentary on all things cryptocurrency.
