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Bitcoin price & Ether traded up; Solana saw double-digit gains amid strong transactional activity

The Bitcoin price recently traded at $17,200, rising 1.5% over the previous day. Early in the trading day, BTC reached a high of $17,390 before falling back to $17,162 at the time of publication.

bitcoin-price-ether-traded-up-solana-saw-double-digit-gains-amid-strong-transactional-activity

BTC/USD 4-hour chart | Source: TradingView

Bitcoin price, Ether rise with most of crypto market

Bitcoin and Ether began the week in the black on greater than usual volume, rising 1.5% and 4%, respectively. The Federal Reserve Bank of New York revealed that U.S. consumer inflation forecasts for December were 5%, versus expectations of 5.2%, on the same day the price rises took place. The 5% reading is the lowest since July 2021 and the second straight month of falls.

The Federal Reserve’s efforts to reduce inflation continue to impact the pricing of Bitcoin and Ether. For cryptocurrency investors who have placed long wagers on either asset, the decline in inflation forecasts is a positive development. Top Fed members’ predictions for interest rate levels in 2023 are roughly in line with the anticipated 5% price increase.

bitcoin-price-ether-traded-up-solana-saw-double-digit-gains-amid-strong-transactional-activity

The smaller gap between price rises and rate levels will slow inflation. For reference, the federal fund’s target rate ranged from 0.25% to 0.50%, while the inflation rate in March 2022 was 8.5%. The sooner markets anticipate a shift away from monetary tightening, which might influence price momentum for both bitcoin and ether, the sooner the gap between inflation and the federal funds rate narrows. Following the publication of the data, the prices of Bitcoin and Ether increased by 0.39% and 0.74%, respectively. Before the release, both assets were trading marginally higher, but after the announcement, the price increases were more pronounced.

Most of the top 10 non-stablecoin cryptocurrencies, including Bitcoin and Ether, saw gains in Tuesday morning trading in Asia thanks to indications that the U.S.’s inflation pressure is receding. The largest increases were made by Solana, which returned to the top 10 by market capitalization. The U.S. Justice Department is reportedly ratcheting up its investigation into the token’s issuer and the largest cryptocurrency exchange in the world, Binance Global. BNB was the only token on the list to decline as a result.

With a rise of 44.5% for the week and the strongest start to the year for any major token, Solana increased 13.7% to trade at $16.29. Solana was on its deathbed a few weeks ago. The Ethereum rival, which stood in the center of the Sam Bankman-Fried universe of tokens, had lost more than 90% of its value by the end of 2022. One of its biggest supporters, Sino Global Capital may have ended up as significant holdings. However, Solana’s native SOL tokens are experiencing a quick price increase as cryptocurrency markets strive to revive after months of stagnation. The protocol’s token has increased by 11% over the past day and by 46% over the past two weeks.

The gains come after the debut of Bonk, a brand-new token with a Dogecoin motif located in Solana. Bonk, released in late 2017 and currently sells for about $0.000001628, has increased by about 1400%.

The value of the Cardano ADA token increased by 7.4% to $0.32, or 24.9%, for the week. According to a Jan. 4 study by Lithuanian cryptocurrency payments processor CoinGate, the run began after ADA entered the top 10 most utilized cryptocurrencies for payments for the first time in 2022.

“Cardano has now jumped an impressive +30% since December 30th. Since the start of the rally, 28 new addresses have popped up on the network that holds 1M or more ADA. Trading volume has hit a 2-month high, including increasing large whale transactions”, Santiment reported.

Cardano has now jumped an impressive +30% since December 30th. Since the start of the rally, 28 new addresses have popped up on the network that hold 1M or more $ADA. Trading volume has hit a 2-month high, including increasing large whale transactions.

Source: Santiment

While trading volume increased 112.2% to $46.9 billion, the overall market capitalization of cryptocurrencies increased 1.6% to $848.3 billion.

To combat inflation, the US Federal Reserve hiked interest rates last year, contributing to stock index declines and increased concerns about a recession. This week, on January 12, the primary inflation indicator, the December U.S. Consumer Price Index, will be announced and should offer additional guidance on Fed policy in the future. Other events to watch today include a speech by Fed Chair Jerome Powell at a central bank meeting in Sweden and the release of Japan’s December CPI report.

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