Cryptocurrency is reaching new heights as the 14th anniversary of its genesis block is celebrated. Bitcoin, the top digital asset, has surged to nearly $19,000 per coin. According to CoinGecko, the price is at a level not seen since September 7, 2022, when it was $19,280 per coin.
The overall market capitalization of the crypto industry has also risen to $943 million in the last 24 hours.
When Bitcoin first became available for trading in 2023, it was at $16,550. But in recent days, the outlook for the wider financial markets has improved, and this appears to have had a positive effect on the value of the digital asset. Fears of an economic downturn have started to abate following the release of the Federal Reserve’s December Consumer Price Index (CPI) report.
The CPI report looks at the change in prices of goods and services in the United States, and is seen as an indication of inflation. Optimism that the economy will not suffer a recession has helped to fuel the surge in Bitcoin’s price. Additionally, El Salvador recently passed a law to create a digital asset framework and issue a ‘Volcano Bond’, which will be backed by the government and use Bitcoin to finance its debts.
When the crypto winter began in March 2022, many prominent companies had difficulty paying their bonds. These included Celsius, Voyager Digital, and FTX.
The picture is looking brighter for other cryptocurrencies too. Ethereum, the second largest virtual currency, traded at $1.425.27, 6.2% higher than on Thursday, and closed the day 0.2% down at $1,408.40.
As the crypto winter continues to take its toll on the industry, there may be some light at the end of the tunnel.
