Bitcoin price tests above $19,000

Bitcoin rose above $19,000 on the evening of January 12 after the release of inflation data in the United States.

At the time of writing, the price had retraced to around $18,800. The 24-hour rise stood at 3.9%, according to CoinGecko.

The second-largest cryptocurrency by market cap traded above $1,430, but has retraced to $1,408 (+0.9% over the past 24 hours) as of now.

Following the leaders, all top-10 assets moved into the green. The largest gain after Bitcoin is shown by Polygon — 3.1%. The total market capitalisation stands at $941.9 billion.

The uptick began to take shape even before the release of the BLS report. In December, year-on-year consumer price growth slowed from 7.1% to 6.5%, versus an expected 6.7%. Core inflation fell from 6% to 5.7%, with expectations at 5.8%.

According to CME FedWatch, the probability of a rate increase at the Federal Reserve’s meeting on February 1 by 25 basis points, to 4.75% per annum, rose to 93.7%. Before the macro data release it stood at 76.7%.

In December, Bitcoin reacted to a drop below $18,000 after the Fed decided to raise the target range for the federal funds rate by 50 basis points—to 4.25-4.50% per annum. That was the highest level since 2007.

In December, Nansen analysts said that the baseline scenario for 2023 was a US recession and a fresh wave of stock-market sell-offs. Under these conditionscryptocurrencies would be subjected to negative revaluations.

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