As Bitcoin reached a high of just over $20,000 per coin on Friday, the cryptocurrency market continued to rise.
The price of bitcoin hasn’t been this high since early November, just before the stunning collapse of FTX.
The overall market capitalization of the industry currently stands at $979 billion, a rise of 3.8% over the previous day, indicating that the broader crypto market is also exhibiting signs of life. In the previous day, cryptocurrency trades totaled more than $72 billion.
In anticipation of the release of the Federal Reserve’s December Consumer Price Index report, the price of bitcoin started to increase earlier this week. Monday marked the beginning of the week’s trading for bitcoin, which has since climbed further. The CPI report confirmed that inflation in the US economy is really dropping while also meeting market expectations.
Both traditional and cryptocurrency investors were pleased with the report’s findings. But it also occurs at a moment when Washington, D.C., has a revived interest in cryptocurrency. Legislators are on high alert after FTX’s fall in November. Sam Bankman-Fried, the founder and former CEO of FTX, was detained last month and charged with eight offences, including wire fraud and violations of campaign financing laws.
Recently, the SEC has tightened up on the cryptocurrency sector, filing new charges against influential players. In relation to a “Earn” scheme that offered investors to earn income on Bitcoin deposits, the Commission yesterday accused cryptocurrency exchange Gemini and cryptocurrency broker Genesis of breaking the securities rules. Politico reported that U.S. House Republicans also made plans for a subcommittee focused on cryptocurrencies.
While many on Crypto Twitter are happy with Bitcoin’s recent gains, $20,000 is still 71% below the cryptocurrency’s previous record high of just over $69,000.
The author’s thoughts and opinions are offered solely for informative reasons and do not represent advice on finances, investments, or other matters.
