Bitcoin (BTC) prices spiked about $1,000 in less than an hour Wednesday as the greenback fell further after the U.S. Consumer Price Index for December rose 0.4% MoM and 1.4% YoY. The U.S. dollar index (DXY), which tracks the greenback against a basket of other currencies, plunged from a 91.42 intraday high to an overnight low at 91.10 immediately following the release of today’s CPI data before putting in a rebound back toward its intraday high at 91.27 where it was trading as of press time
Among major altcoins, Ether (ETH) was up 3.88% at $1,145 and Ripple’s XRP was up 7.20% at $0 .2396 as of 20:10 UTC (3:10 PM EST).
The bitcoin price rose more than $1,000 in less than an hour Wednesday as the greenback fell further after the U.S. Consumer Price Index for December rose 0.4% MoM and 1.4% YoY.
BTC Gets A Boost
The BTC price spiked about $1,000 from its lowest level since June 2018 to its highest since November 2018 on Coinbase Pro, which saw its highest volume ever at 21:00 UTC Wednesday evening with over 600k in BTC/USDT contracts traded within 24 hours.
The BTC price is rising again, climbing above $3,400 and $3,500 in the last two days. This is a significant upturn compared to its recent lows of around $3200 in mid-August. However, it’s still far below its all-time high of nearly $20,000 seen at the end of 2017.
To understand Bitcoin’s overall direction and what factors will determine whether it has another big run soon or not requires an examination of both fundamental data on Bitcoin itself as well as market fundamentals surrounding cryptocurrencies more broadly.
For those who are concerned about the potential impact of this growth on the U.S. economy and its dollar-denominated assets, you may want to consider that higher interest rates mean more money flowing into equities and other investments which in turn will likely drive up their prices as well. So while we don’t expect this rally to last forever, there’s no reason why it should end anytime soon either.”
