Bitcoin has hit a new nine-month high of $26,533 on Tuesday, marking its fourth consecutive day of gains. This surge in value comes as a result of the chaos in global markets after the recent collapse of Silicon Valley Bank. The rise in Bitcoin’s price follows the expected rate of 6.0% YoY for the Consumer Price Index (CPI).
On Sunday, Bitcoin gained 7.6%, and on Monday, it gained 9.1%, with the highest recorded price on Tuesday at around 1306 GMT. This increase in value highlights Bitcoin’s resilience despite its volatile past and the recent setbacks in the cryptocurrency market.
The U.S. dollar remained relatively stable overall after the release of consumer price data on Tuesday. The data showed inflation still rising, but at a slower pace than the previous month.
This widely anticipated reading may lead the Federal Reserve to slow down or even pause its interest rate hike next week, which could further benefit Bitcoin and other cryptocurrencies.
In 2022, cryptocurrency prices fell sharply due to rising interest rates, leading investors to abandon risky assets. Major crypto firms such as FTX also suffered from a series of collapses, resulting in significant losses for their customers. However, Bitcoin’s recent surge in value shows that it has the potential to bounce back and continue its upward trend.