For the first time since mid-June, Bitcoin briefly crossed $25,000, and the momentum was continued by lower-than-expected US inflation data and progress toward a massive Ethereum upgrade.
According to Arab Net, the largest cryptocurrency rose by 2.2% on Sunday to $ 25.031, its highest level since June 13, before paring its rise to trade at $ 24,750, rising for the fifth consecutive day in a series fueled by US consumer price index data that came lower. of expectations.
The second-largest cryptocurrency by market capitalization, Ether, gained as much as 2% to $230.50, after topping $2,000 on Saturday for the first time since May 31 amid optimism about completing a long-awaited blockchain software upgrade known as the consolidation. According to Bloomberg.
“The next CPI will be released just two days before the consolidation, at which point we expect a lot of pre-event momentum in the market,” Fundstrat digital asset strategist Shaun Farrell said in a note on Friday. Long- and medium-term investors should consider using any dips as buying opportunities.
The recent hikes follow cryptocurrency's severe first-half defeats as the Federal Reserve raised interest rates to combat high inflation, with the price of Bitcoin, Ether and other tokens dropping by more than 50%. And with US inflation data that came in below expectations last week, potentially paving the way for less aggressive tightening from the Fed, riskier assets like the Nasdaq 100 rallied — helping to boost gains in cryptocurrencies, which have been strongly correlated with this indicator for several months. .
“Besides increased volumes of derivatives, we also anticipate that native investors may begin to increase their venture investment,” Farrell said, noting an increase in encapsulated Bitcoin — a currency that is tied to Bitcoin in terms of price, but used on the Ethereum network — which can be used as collateral in Decentralized finance on Ethereum, as well as a rally in the stable velocity of coins last week suggest more activity on the chain.
This comes in addition to the positive developments for Ether, as it is now likely that the Ethereum network will be integrated and shifted from a Proof of Work system, to a Proof of Stake system, which provides a lot of energy by mid-September.