Bitcoin price today reached $21,000, as investors were optimistic that the cryptocurrency may have reached its lowest point and that inflation may have peaked

Bitcoin was today above $21,000 as the world’s largest and most popular digital token was trading with gains of more than 2% at $21,121 and has risen over 24% in the last seven days. It crossed the level on Saturday, first since November 8, 2022. The price of Bitcoin was stuck in a narrow range around $16,000 to $17,000 for weeks before the latest breakout.

The overall market cap of the crypto universe rose above $1 trillion during the weekend for the first time since early November, according to data from CoinGecko. The global cryptocurrency market cap today was up over 2% in the last 24 hours to $1.04 trillion, as per the data by CoinGecko.

Bitcoin price today reached $21,000, as investors were optimistic that the cryptocurrency may have reached its lowest point and that inflation may have peaked. The gains came after a report on consumer prices showed a decline in January inflation numbers. The Federal Reserve is also likely to reduce interest rate increases, said CEO and Co-founder, Edul Patel, Mudrex.

According to data from Coinglass, a cryptocurrency trading information platform, the cryptocurrency market recorded liquidation worth $721 million in the last 24 hours. A total of 132,021 traders liquidated, with a $6.84 million short bet against Bitcoin being the largest liquidation.

On the other hand, Ether, the coin linked to the ethereum blockchain and the second largest cryptocurrency, also gained about 2% to $1,566. Meanwhile, dogecoin price today was also trading over 2% higher at $0.08 whereas Shiba Inu surged over 6% at $0.0000010.

Ethereum is gaining momentum and it is going strong. The US consumer price index (CPI) data released on January 12, 2023, confirmed the thesis that inflation was continuing to drop, Shrikant Bhalerao, co-founder, Seracle, noted.

Interestingly, even though there have been many Bitcoin purchases over the last day, the amount of Bitcoin leaving exchanges reached a record-early high for the year. The unwinding of long positions held in cryptocurrency has the opposite effect on short positions held in USD. July 2021 saw Binance and USD-denominated futures, Shah noted.

Other crypto prices’ performance also improved as Tether, Stellar, XRP, Polkadot, Chainlink, XRP, Solana, Avalance, Polygon, Apecoin, Tron, Solana, Litecoin, Uniswap prices were trading with gains over the last 24 hours.

The Federal Reserve is on track to downshift to smaller interest-rate increases following the further cooling in prices, though it’s likely to keep hiking until pressures show more definitive signs of slowing. That’s helped boost risk assets like the Nasdaq 100 stock index, which has gained for six straight days.

U.S. equity markets will be closed Monday in observance of Martin Luther King Jr. Day, which honours the late civil rights activist. Major indexes rose slightly on Friday to continue their own 2023 rally. The tech-heavy Nasdaq and S&P 500, which has a hefty technology component, are up more than 5% and 4%, respectively.

Still, the upswing in assets may be short-lived if economic news falters, as a number of observers are predicting.

In a Wall Street Journal quarterly survey, nearly two in three economists expect the U.S. to fall into recession this year, approximately the same percentage as in the previous survey, although many believe the economic contraction will be mild.

Meanwhile, crypto companies are still tightening their belts, with some of the biggest firms collectively shedding thousands of jobs in the first weeks of the year, a Bloomberg analysis showed.