Why The Crypto Market Is Up Today? Here Are Top Reasons

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It looks like the year 2023 will be in favor of the crypto market as since the beginning of the year, the market is experiencing recovery. Now just after 15 days of 2023, for the first time since November 2022. The global crypto market cap has surpassed $1 trillion as per CoinGecko data. The continued crypto rally is led by Bitcoin which hit a high of $20,000, the price never seen since early November.

The world’s first cryptocurrency had never seen this price level after November 8. Bitcoin began its recovery journey at the start of 2023 and today, on January 14 the King currency has hit $20,000. At the time of writing, Bitcoin is selling at $20,902 after a surge of 11.04% over the last 24hrs.

The same is with other currencies like Ethereum, Cardano, Solana, BNB, Dogecoin. Infact, Solana is among the top gainers with a jump of more than 40% over the last 24hrs.

This Is Why Crypto Market Might Be Surging

One of the reasons for such a positive performance by cryptocurrencies is the release of Consumer Price Index (CPI) on January 12. As per the reports, the CPI has dropped to one-year low of 5.72% in December 2022. The decrease in CPI suggests that the inflation is decreasing. This phenomenon has pushed the market price with a hope that the Federal Reserve might reconsider their interest rate hikes. However, the Fed is expected to continue their interest rate hikes until the price pressure indicates some certainty.

On the other hand, the news of the collapsed FTX recovering $5 billion of assets which also includes cash and cryptocurrencies. The judiciary has also asked FTX to return the funds to its customers by March 15, 2023. However, the firm’s CFO Mary Cilia stated that the funds could be returned by April. 

Furthermore, the Ethereum community is all set to unveil its next hard fork, Shanghai Hard Fork which will unlock those ETH tokens that have been staked for months now.

Meanwhile, though Bitcoin has managed to claim $20,000 level, the flagship currency is still down by 71% from it’s all-time high of $69,000.