The cryptocurrency market continued its rally on Friday as Bitcoin hit a new high of just over $20,000 per coin.
According to CoinGecko data, the price of Bitcoin has not been this high since early November, before the FTX crash.
The broader cryptocurrency market is also showing signs of vigor, as the industry’s market capitalization now stands at $979 billion, up 3.8% over the past 24 hours. According to CoinGecko, over $72 billion in cryptocurrencies were traded on the last day.
BTC’s price started rising earlier this week in anticipation of the release of the Federal Reserve’s December Consumer Price Index report. Bitcoin opened the week at $17,207 on Monday and has been on an upward trajectory ever since. The Consumer Price Index report lived up to market expectations, showing that inflation in the US economy is indeed slowing.
The report was welcome news for both traditional and cryptocurrency investors. But it’s also a time of renewed focus on cryptocurrencies in Washington DC. FTX founder and former CEO Sam Bankman-Fried was arrested last month and charged with eight counts, including wire fraud and campaign finance violations.
The SEC has also recently stepped up its scrutiny of the cryptocurrency market, making new charges against major players. Yesterday, the European Commission indicted cryptocurrency exchange Gemini and cryptocurrency broker Genesis in violation of securities laws over a “earn” program that allows investors to earn yields on bitcoin deposits. The Republican Party in the US House of Representatives yesterday announced plans for a subcommittee dedicated to cryptocurrencies. Politico report.
Bitcoin’s rise has been celebrated by many on Crypto Twitter, but $20,000 is 71% lower than Bitcoin’s all-time high of just over $69,000.
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