Cryptocurrency

Bitcoin Begins Recovery Aided by Inflation

Bitcoin Begins Recovery Aided by Inflation

  • Bitcoin rose above $44,000 on Wednesday, January 12th, this marks its highest trading price since January 6th
  • The rise in the price of the cryptocurrency was likely triggered by positive sentiments, following a fresh release of inflation stats
  • Figures from the U.S Bureau of Labor Statistics indicate that inflation in the United States reached 7% in December.

Bitcoin rose above $44,000 on Wednesday evening, according to data from CoinMarketCap. This marks the highest trading price of the flagship cryptocurrency since January 6th.

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The recovery in the cryptocurrency market was a result of improved sentiment, after the release of new statistics about inflation that indicates a 7% rise in the Consumer Price Index in 2021.
The latest statistics released by the U.S Bureau of Labor Statistics indicate that inflation in the United States reached an estimated 7% in December, following through with expectations for the month.

bitcoin

The 7% Consumer Price Index increase was calculated for January to December in the year under review. Inflation was however lesser (5.5%) when the prices of volatile assets such as food and fuel were removed.

Read also: Binance Becomes Official Sponsor of AFCON 2021

Rising inflation is often seen as a positive thing for the price action of Bitcoin as most traders have indicated that they see the leading cryptocurrency asset as a good hedge against inflation.

Meanwhile, the latest rise in the price of the world’s number one crypto asset has pushed the Crypto Fear and Greed Index to 22 out of 100 points. Although it still signals extreme fear among investors, it is a slight improvement from last week’s low of 10 points.

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