On March 14, the price of Bitcoin unexpectedly rose beyond the $26,000 threshold, hitting a nine-month high in the process. Bitcoin (BTC), the most valuable cryptocurrency by market capitalization, continued its upward trend and surpassed $26,000 for the first time since June 2022.
According to the TradingView chart, BTC soared to intraday highs of $26,553. As of the time of writing, it has gained 16.67% over the previous 24 hours to reach $26,089.
The recent gains come in the wake of the most recent Consumer Price Index (CPI) announcement for February, which showed a drop in inflation to 0.4% from 0.5% in January, as predicted by economists.
On a year-over-year basis, inflation decreased from 6.4% to 6.0% in the previous month, as anticipated. Before to the announcement, the markets had assumed that the Fed would approve an additional 0.25 percentage point rise to its benchmark rate.
With the release of the CPI report, this probability increased, and traders are now projecting higher odds that the Fed will increase interest rates by a quarter point.
The closing of two significant crypto-friendly banks last week and the USDC stablecoin depeg over the weekend, as well as the liquidation of $158 million worth of short positions or bets, prompted numerous individuals to be surprised by Bitcoin’s rally.
Following the sudden SVB collapse on March 10, Bitcoin hit a low of $19,568. On track to post its fourth straight day of gains since March 11, its price began a strong rebound from the lows.
The Federal Deposit Insurance Corporation’s latest claim that Silicon Valley Bank depositors will have full access to their funds following verification of a successful transfer of deposits to a new bridge bank has contributed to this.
Moreover, Binance’s conversion of Binance USD (BUSD) worth $1 billion to boost the market may have increased buying pressure.