Cryptocurrency Market Remains Steady Despite Higher US Inflation and FTX Liquidation
The cryptocurrency market showed resilience this Thursday with Bitcoin (BTC) maintaining its position around the $26,000 mark for the second consecutive day. This steadiness comes despite the higher-than-expected U.S. inflation data and the approval for crypto exchange FTX to liquidate its remaining assets.
FTX Receives Approval for Asset Liquidation
On Wednesday, September 13, 2023, FTX received approval from a bankruptcy court to sell its crypto assets. The news led to a slight retraction in Bitcoin’s price, which had risen to $26,350 during U.S. afternoon hours. By Thursday, Bitcoin was trading around $26,000.
Resilience of Major Cryptocurrencies
Other major cryptocurrencies also demonstrated resilience. Despite speculations of a major dump due to FTX’s liquidations, Solana (SOL) advanced earlier on Wednesday and remained in the green on Thursday. Altcoins such as BNB, Ethereum, Cardano, XRP, Polygon, and Dogecoin also attempted to recover their losses in the last 24 hours.
Impact of US Inflation Data
On Wednesday, the U.S. government’s Consumer Price Index (CPI) report for August showed that headline inflation rose to 3.7% on a year-over-year basis from 3.2% a month earlier. This increase was higher than economist forecasts of 3.6%. Despite this data indicating the highest one-month increase since June 2022, Bitcoin and other cryptocurrencies managed to hold their ground.
Bitcoin’s Potential as an Inflation Hedge
The crypto market’s resilience in the face of these developments is being interpreted by some as an indication of Bitcoin’s potential as an inflation hedge. However, it remains to be seen if Bitcoin will continue to maintain its current price level. The support level to watch is $24,500.
Positive Market Sentiment
The overall market sentiment in the last 24 hours remained positive with 47 of the top 50 cryptocurrencies trading in green. Ethereum also moved above the $1,600 mark, gaining more than 1.8%. The Crypto Fear and Greed Index improved to reach the 45 mark, indicating a balanced market sentiment.
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