Bitcoin Jumps Above $26,000 After Latest U.S. Inflation Data Comes In As Expected.

As investors considered the most recent inflation statistics, bitcoin increased on Tuesday to levels last seen in the summer.

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Coin Metrics reports that Bitcoin increased by more than 7% to $26,110.50. $25,200 had been seen as a crucial level to watch by chart watchers. Ether increased 3.7% to $1,747.11 in price.

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Since Friday, when officials closed Silicon Valley Bank, bitcoin has increased by around 28.5%, and it is already up 59% for 2023. Ether has increased 20% since last Friday and 45% so far this year.

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The hike was timed to coincide with the most recent reading of the consumer price index, which revealed an adjustment of 0.4% from January to February, in line with the consensus forecast of economists surveyed by Dow Jones. The so-called core CPI, which excludes volatile energy and food costs, revealed a monthly gain slightly above forecasts from analysts as well as an annual change that was consistent with forecasts.

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Since late last week, cryptocurrency prices have substantially increased, and market mood has completely changed as a result of US regulators supporting Silicon Valley Bank & Signature Bank depositors. Some investors then made the assumption that the Fed would raise interest rates more gradually as a result.

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Even though bitcoin hasn't been moving as closely with stocks as it did throughout the majority of 2022, its value is still primarily determined by macroeconomic data, and some analysts predict that correlation will increase even in 2023, when irrational events will dominate the market.