Crypto Market is Showing Signs of Life as Bitcoin Surges

Bitcoin surpasses US$20K, due to rising inflation expectations and wiping out post-FTX losses

The cryptocurrency market continued its uptrend, with Bitcoin reaching a high of just over US$20,000 per coin. Bitcoin hasn’t been priced this high since early November, before the spectacular collapse of FTX. The broader crypto market is also showing signs of life, with the industry’s total market capitalization currently standing at US$979 billion, up 3.8% in the last 24 hours.

More than US$72 billion in cryptocurrency has been traded in the last day. Bitcoin price began to rise earlier this week in anticipation of the Federal Reserve’s December Consumer Price Index report. Bitcoin began the week trading at US$17,207 and has been steadily rising since. The CPI report met market expectations, demonstrating that inflation in the United States is indeed slowing. The report was welcomed by both traditional and cryptocurrency investors.

However, it comes at a time when Washington, D.C. is refocusing on cryptocurrency. The November collapse of FTX has lawmakers on high alert. Sam Bankman-Fried, the founder and former CEO of FTX, was arrested last month and charged with eight crimes, including wire fraud and campaign finance violations. The SEC has recently increased its scrutiny of the cryptocurrency market, bringing new charges against major players. The Securities and Exchange Commission charged cryptocurrency exchange Gemini and cryptocurrency broker Genesis with securities law violations yesterday in connection with a “Earn” program that allowed investors to earn a yield on Bitcoin deposits. Politico reported that US House Republicans also announced plans for a cryptocurrency subcommittee yesterday. While many on Crypto Twitter are celebrating Bitcoin’s recent gains, US$20,000 is still 71% lower than Bitcoin’s previous all-time high of just over US$69,000. Bitcoin and Ethereum are up ahead of the Fed’s upcoming CPI report. The Consumer Price Index (CPI) in the United States measures the rate of change in various goods and services prices. It is a key indicator for calculating inflation. According to Coingecko data, Bitcoin (BTC) has broken its near-term sideways momentum, reaching a new monthly high of UA$18,287.30. BTC is currently trading at around US$18,165, up 4.1% in the last 24 hours. Along with the bullish price action, Bitcoin’s daily trading volumes have increased 48.73% year on year to US$33.398 billion. Bitcoin is up 7.8% weekly, reversing its monthly losses.