On Wednesday, the price of bitcoin continued rising, surging to over $99,000 as it looked poised to return to the $100,000 mark, driven by new inflation data.
Minutes after the U.S. Bureau of Labor Statistics unveiled new data from the Consumer Price Index, bitcoin’s price jumped by $1,500, representing a 2% price improvement for the day.
The CPI rose 0.4% last month, up from November’s 0.3%. On Tuesday, the Bureau of Labor Statistics also released the Producer Price Index, showing a 0.2% spike in December.
The global crypto market also reached $3.6 trillion on Wednesday, representing a 2.69% jump over the last 24 hours, according to CoinGecko data . Bitcoin, the world’s leading cryptocurrency, now hosts a market capitalization of nearly $2 trillion.
Altcoins like XRP and Solana also saw gains on Wednesday, with XRP jumping to $2.85 a token, representing a 6.6% increase for the coin. Its recovery shows it bouncing back strongly compared to rival cryptocurrencies. Solana, too, spiked to a new price of $194.30, representing a 3.39% jump over the last 24 hours.
Analysts say that XRP's recent price growth is buttressed by technical fundamentals, including its recent recovery from significant price levels and alignment with its 50-day moving average, or the average closing price of a cryptocurrency over the last 50 days. “XRP is showing a much more dynamic recovery after the December sell-off,” said Alex Kuptsikevich, the chief market analyst at FxPro.
“The courts are increasingly inclined to the company's arguments, pointing out the excessive rigidity of the SEC [U.S. Securities and Exchange Commission]," Kuptsikevich added. "It is also impossible not to notice the attractive technical picture. Active buying returned to XRP after touching the classic 61.8% retracement level from the November-December rally. The reversal also coincided with an approach to the 50-day moving average, unlike many leading altcoins that have fallen below this line. At current levels of $2.84, XRP has returned to the December highs. A further move higher would trigger a Fibonacci extension pattern with a potential target of $4.40.”
