After falling to the minimum of 15.5 thousand dollars due to the collapse of FTX liquidity, Bitcoin (BTC) gained momentum thanks to better-than-expected Consumer Price Indexes (CPI) released by the U.S. Bureau of Labor Statistics.
IncomeSharks crypto and market education platform he tweeted: :
“Bitcoin has an easy path back to 20,000. dollars as stock prices rise and CPIs become positive.”
According to the data, Bitcoin rose by 3.78% in the last 24 hours, reaching $17,281 in intraday trading. CoinMarketCap.
The acute augment in CPI was lower than expected, as it increased by 0.4% in October, the lowest since January 2022. US Bureau of Labor Statistics indicated: :
“The all-items index increased 7.7 percent in the 12 months ending in October, the smallest increase in the 12 months since the period ended January 2022. The all-items index excluding food and energy increased 6.3 percent in last 12 months… all of these increases were smaller than in the period ending in September.”
The lower CPI data has sparked a bullish reaction in the BTC market as it may mean that Federal Reserve (Fed) will ease interest rate increases that are harmful to the cryptocurrency ecosystem.
The Fed is raising interest rates to 75 basis points (bps) and this is one of the main factors hindering significant cryptocurrency growth.
Despite positive CPI numbers, the cryptocurrency market is still not out of the woods as bears continue to bite. Market knowledge provider. Material indicators explained: :
“CPI was lower, the number of unemployed people was higher. FireCharts shows the initial reaction of the cryptocurrency market to the increase in forecast economic numbers. The Bear Rally is still alive BTC.”
Source: MaterialIndicators
The collapse of FTX, one of the leading cryptocurrency exchanges, has also caused uncertainty in the digital asset space.
According to reports, the liquidity problems facing FTX may have resulted from the exchange’s CEO, Sam Bankman-Fried, secretly funneling at least $4 billion to support his trading arm Alameda Research, with some of the funds being customer deposits.
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