Bitcoin Tops $25,000 For First Time Since June Amid Crypto Rally

(Bloomberg) — Bitcoin briefly topped $25,000 for the first time since mid-June, as momentum continued on colder-than-expected U.S. inflation data and progress towards a big refresh.

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The top cryptocurrency surged 2.2% on Sunday to hit $25,031, its highest level since June 13. As of 6 am New York time, it was trading at around $24,750, rising for the fifth straight day in a band fueled by US CPI data. which was below expectations. Ether gained a whopping 2% to $2,030.50 after hitting $2,000 for the first time since May 31 on Saturday amid optimism over the completion of a long-awaited software update to its blockchain, known as Merge.



“The next CPI will be published just two days before the merger, at which time we expect significant pre-event momentum in the market,” Fundstrat digital asset strategist Sean Farrell said in a statement Friday. “Long and medium term investors should use any dip as a buying opportunity.”

Cryptocurrency struggled in the first half of the year as the Federal Reserve raised rates to combat stubbornly high inflation, with prices of bitcoin, ether and other tokens falling by more than 50%. As U.S. inflation data came in below expectations last week, potentially paving the way for less aggressive tightening by the Fed, risky assets like the Nasdaq 100 index helped, helping to boost the cryptocurrency, which was highly correlated with what equities are measuring. months.

“In addition to increasing volumes of derivatives, we also suspect that crypto investors may start to take on more risk,” Farrell said, citing an increase in the balance of wrapped bitcoins that can be used as collateral in decentralized finance on Ethereum. in addition to the increase in the stablecoin speed last week, indicating more activity on the network.

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This adds to the positives for Ethereum, as the Ethereum blockchain merger is likely to happen around September 15, network co-founder Vitalik Buterin said after the final testing phase, known as Goerli, a few days ago. The merger represents a shift from the way Ether tokens were minted and transactions verified from block mining using complex computer puzzles in a proof-of-work method to proof-of-stake. Additionally, according to Genesis Global Trading, some investors are gearing up to capitalize on a possible fork that will keep Ethereum with proof of work.

Read more: Ethereum founder Buterin plans blockchain merger on September 15

“Ethereum is currently being driven by new fundamentals (post-merger tokenomics), speculative element (ETH PoW fork, much of which is still unknown), as well as global macroeconomic sentiment,” Noel Acheson and Willis Croft write Genesis Strategies. in a note on Friday. “While it has taken a breather over the past few days, turning it into a bounce from the lows of the beginning of the year, it both reflects growing interest and reminds the wider investment universe that exploited stories in the cryptocurrency markets are just around the corner.

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