Hassan Maishera
TLDR;
- Bitcoin rose to a high of $26,500 on Tuesday following the latest inflation figures but has since dropped below the $25k psychological level.
- This was the highest price Bitcoin has achieved in nine months, prompting discussions amongst crypto enthusiasts that the bull market might be back.
Bitcoin Rallies To A Nine-Month High
The world’s largest cryptocurrency by market cap achieved a new high on Tuesday. Bitcoin rose above the $26k level for the first time in nine months, prompting discussions that the bull market might be back.
The rally came as traders reacted to the mildly encouraging inflation data and the banking sector’s continued rebound from near disaster.
On Tuesday, the United States Bureau of Labor Statistics released the February Consumer Price Index (CPI), which showed inflation dropped to 6% from January’s 6.4% reading.
The market also continued to respond to the positive news that the U.S. banking and finance regulators have decided to protect depositors of collapsed Silicon Valley (SIVB) and Signature Bank (SBNY). The move indicated investor hopefulness that the U.S. central bank would become dovish in the near term, reversing its current hawkish position when dealing with inflation.
Bitcoin Slips Below $25k
After rallying above $26k on Tuesday, Bitcoin lost momentum and had to settle below the $25k level later on. At press time, Bitcoin is trading at $24,993, up by more than 2% in the last 24 hours.
The total crypto market cap also stands at $1.10 trillion, up by 2.5% so far today. Ether and MATIC are some of the other top performers amongst the leading cryptocurrencies as positive market sentiment returns.
Bitcoin could be looking to break past the $25,300 resistance level soon, as doing so would allow it to test the second major resistance level above $27k.
