Business News Asia
Bitcoin, the world’s largest cryptocurrency, saw a surge of more than 6% on Friday (Jan. 20), breaking past $22,000, its highest level since mid-September. This comes as investors are keeping a close eye on the results of the upcoming US Federal Reserve meeting, which is expected to result in a 0.25% hike in interest rates.
On Monday (Jan. 23), Bitcoin rose by $1,315, or 6.24%, to $22,753.50. Since the year’s low of $16,496 on Jan. 1, 2023, Bitcoin has seen an increase of 35.8%.
Ether, the second-largest cryptocurrency, also saw an increase on Friday, rising by $87.8, or 5.66%, to $1,639.2.
Analysts have commented that the surge in Bitcoin is driven by the expectation that the Federal Reserve will slow down the pace of interest rate hikes. This sentiment is reflected in CME Group’s FedWatch Tool, which currently indicates that investors believe there is a 97.2% chance of a 0.25% interest rate hike to the range of 4.50-4.75% at the Fed’s Jan. 31-Feb. 1 meeting.
The recent Consumer Price Index (CPI) and Producer Price Index (PPI) data from the US have also indicated that US inflation has peaked, further supporting the idea of a slower pace of interest rate hikes.
The Spot Market is Open
Monday, January 23, 2023