Bitcoin Is on the Rise As Bulls Return

Bitcoin evangelists may breathe. 

They must tell themselves that their wildest predictions will probably come true. 

For several days now, prices of the most popular cryptocurrency have been on the rise, breaking with a see-saw momentum seen since the bankruptcy of the FTX cryptocurrency exchange on Nov. 11.

Bitcoin (BTC) prices were hovering around $20,749.71 at last check, according to data firm CoinGecko. They are up 22% in the last seven days. BTC prices on Jan. 13 even exceeded the symbolic threshold of $21,000. They had not crossed this threshold since Nov. 5.

BTC’s current good momentum has unsurprisingly been hailed by billionaire Michael Saylor, one of the digital asset’s staunchest supporters.

“#Bitcoin is the ₿est Strategy,” Saylor wrote on Twitter on Jan. 14. MicroStrategy  (MSTR) – Get Free Report, Saylor’s software company, is one of the few large companies to have invested heavily in bitcoin.

Bulls Are Back

The optimism around bitcoin is due to the fact that investors are relieved by recent data around inflation that suggests that the Federal Reserve will be less aggressive in its interest rate hikes. 

This possible inflection point would then have the consequence of avoiding a deep recession, particularly negative for risky assets such as cryptocurrencies. Investors therefore prefer to ignore the uncertainties linked to the bankruptcy of FTX still hovering over the crypto sector.

“We are technically still in a bear market, but the signs are the bulls are beginning to take back control,” said Nigel Green, the CEO and founder of Fintech deVere Group. “The relief rally began on the back of the latest U.S. inflation data which was released on Thursday. It revealed U.S. CPI slowed to 6.5% in December from 7.1% the previous month.

“As inflation in the world’s largest economy is, it seems, being brought under control thanks to the Federal Reserve’s aggressive interest rate hikes, it makes it more likely that the central bank will begin to take its foot off the brake of the economy by slowing the hikes.”

U.S. inflation declined in December, and slowed…

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