The global cryptocurrency market capitalization has increased by nearly 5% in the past day to $934 billion. The prices of several top cryptocurrencies, including Bitcoin and Ethereum, have also surged in the past 24 hours.
At the time of writing, Bitcoin was trading at $20,798 while the price of Ethereum (ETH) was at $1,209. Among other major tokens, the prices of Solana, XRP, Avalanche, and Polygon (Matic) jumped 10% in the past 24 hours, according to data from CoinMarketCap.
The rise in crypto prices may have come as a pleasant surprise to crypto enthusiasts, especially after US CPI-based inflation data hit a new 40-year high of 9. 1%.
Part of the reason for the current crypto price spike today can be attributed to the possibility of interest rate hikes of 0.75 basis points in the US, instead of 100 basis points. base, to fight against high inflation.
US Federal Reserve Governor Christopher Waller said on Thursday he supported a 0.75 basis point increase in interest rates.
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Will crypto prices rise further?
The current spike in cryptocurrency prices may be short-lived as overall market sentiment remains in the “Extreme Fear” zone, according to the Crypto Fear & Greed Index. In addition, the rise in interest rates in the United States could be higher to control inflation.
Experts say markets should maintain momentum to regain investor confidence and keep moving higher.
“Bitcoin bounced back above the US$20,000 mark after bulls pushed the coin higher. If buyers can hold BTC at the current level, we could see it test the US$21,000 level soon. The second-largest cryptocurrency, Ethereum, saw an almost 10% surge outperforming BTC after its Shadow Fork 9 went live, pushing the project forward towards merger,” said Edul Patel, co-founder and CEO of crypto investment platform Mudrex.
“Bitcoin gained just over 2% yesterday, closing in on the $21,000 level. Market sentiment appears to be sinking deeper into the fear zone. BTC’s daily chart continues to cross a descending channel pattern,” WazirX Trade Desk analysts said in a note shared with FE.com.
“Meanwhile, the daily MACD is gaining towards the zero level, an indication that the bull market is just around the corner. The next resistance level for BTC is expected at $32,300 and an immediate support level is expected at $17,700,” they added.
(Cryptos and other virtual digital assets are unregulated in India. They are considered extremely risky for investment. Please consult your financial advisor before making any investment decision)