Bitcoin surpassed the $30,000 mark for the first time since June, marking a significant milestone for the largest cryptocurrency by market cap. Reaching as high as $30,432.83 before settling at $30,237.42, was driven by anticipation of key inflation data later in the week that could impact cryptocurrency prices. This recent surge has caught the attention of investors, who are closely monitoring the consumer price index number set to be released on Wednesday, as well as the producer price index due on Thursday.
Speculation is swirling that positive data could prompt the Federal Reserve to pause or reconsider its rate-hiking plans, which in turn could benefit assets like bitcoin. James Lavish, managing partner at the Bitcoin Opportunity Fund, believes that if bitcoin can maintain its momentum above $30,000, it could potentially push into the mid- to high-30s, leading to short speculators covering their positions and driving further buying activity. As a result, some investors are positioning themselves ahead of potential price increases.
While cryptocurrencies, including bitcoin and ether, have experienced significant gains this year, with bitcoin up over 80% year-to-date and ether up 60%, their price movements have not always been in tandem. However, recent events, such as bank closures and the upcoming Ethereum tech upgrade known as "Shanghai," have influenced their correlation. Traders are closely monitoring these macro drivers, including the inflation data, to assess the future direction of the cryptocurrency market.
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