On January 11, 2023, Bitcoin’s price increased by 5% to surpass $18,000 for the first time in a month.
Bitcoin was trading for $18.1K on Thursday morning, according to data from the Binance Exchange.
In addition to traders betting on a slowdown in U.S. inflation, the market’s mood was also affected by the lawyers for FTX finding assets worth billions of dollars.
More specifics
The release of U.S. inflation data is expected to show a slowdown in inflation. The consumer price index will have decreased by 0.1% from one month to the next in December, according to economists surveyed by Dow Jones.
Inflation is expected to rise by 6.5% year over year, which would still be higher than the 7.1% increase in November and significantly lower than the 9.1% peak rate in June.
Investors anticipate that the Federal Reserve of the United States will lower interest rates as a result of the decline.
The Fed and other central banks have been raising interest rates over the past year or so in an effort to control soaring inflation. These actions led to significant drops in equities and cryptocurrencies in 2022. To lessen some of the burdens, it is anticipated that the central bank will lower interest rates.
Recovery of Bitcoin
In line with a bear market in the market for digital assets, Bitcoin has been in a downtrend for more than a year.
Bitcoin’s price, however, has recently started to rise, indicating that the market is responding favorably to the news and that the selling pressure is being absorbed.
This could also mean that the market believes that the worst for digital assets has passed and that most of the negative news has already been factored into prices.
Additionally, lawyers for the now-defunct FTX cryptocurrency exchange claimed on Wednesday that they found about $5 billion in “liquid” assets, such as cash and digital assets.
The $5 billion cache was so large, however, that selling the assets could have a significant negative impact on the market and reduce their value.
