exceeded Bitcoin Briefly $25,000 for the first time since mid-June, as the momentum continued due to less-than-expected US inflation data and progress towards a massive Ethereum upgrade.
The largest cryptocurrency rose 2.2% on Sunday to $25.031, its highest level since June 13, before paring its advance to trade at $24,750, rising for the fifth consecutive day in a streak fueled by less-than-expected US Consumer Price Index data.
The second-largest cryptocurrency by market capitalization, Ether, gained as much as 2% to $230.50, following topping $2,000 on Saturday for the first time since May 31 amid optimism over the completion of a long-awaited blockchain software upgrade known as the “consolidation process.” , according to Bloomberg.
“The next CPI will be released just a couple of days before the consolidation, at which point we expect a lot of pre-event momentum in the market,” Fundstrat digital asset strategist Shaun Farrell said in a note on Friday. “Long- and medium-term investors should consider using any dips as buying opportunities.”
The recent hikes follow cryptocurrency’s severe first-half defeats as the Federal Reserve raised interest rates to combat high inflation, with the price of Bitcoin, Ether and other tokens dropping by more than 50%. And with US inflation data that missed expectations last week, potentially paving the way for less aggressive tightening from the Federal Reserve, riskier assets like the Nasdaq 100 rallied — helping to consolidate gains in cryptocurrencies, which have been strongly correlated with this indicator for several months. .
“Alongside the increase in derivative volumes, we also anticipate that the original investors may start to increase their venture investment,” Farrell said, referring to an increase in the stock of encapsulated Bitcoin — a currency that is pegged to Bitcoin in terms of price, but used on the Ethereum network — which can be used As collateral in decentralized finance on Ethereum, as well as a rally in the coin’s stable velocity last week suggest more activity on the chain.
This comes in addition to the positive developments for Ether, as it is now likely that the Ethereum network will be integrated and shifted from a Proof of Work system, to a Proof of Stake system, which provides a lot of energy by mid-September.
