Bitcoin (CRYPTO: BTC) The other major coins flashed green on Wednesday evening as the global cryptocurrency market cap rose 3.7% to $2.1 trillion.
What happened: The major cryptocurrency was trading 2.8% down at $43,850.10 in 24 hours. For the week, it is up 0.4%.
Ethereum (CRYPTO:ETH) It rose 4.2% in 24 hours to $3,368.69. During a seven-day tracking period, the second largest coin by market cap fell 4.9%.
Dogecoin (CRYPTO: DOGE) gained 6.3% to $0.16 in 24 hours. Over the past seven days, it is up 2.8%.
DOGE- competitor Shiba Inu (SHIB) rose 15.6% to $0.0000032 in 24 hours. For a week, it rose 5.5 percent. At the time of publication, it was the third largest 24-hour gainer according to CoinGecko.
Oasis Network (A rose), convex finance (CVX) and harmony (ONE) was among the top gainers over the 24-hour period, according to CoinGecko data.
ROSE is up 16.8% to $0.52, CVX is up 16% to $43.97, and ONE is up 12.5% to $0.34 in the period.
See also: How to buy Bitcoin (BTC)
why does it matter: The Labor Department announced a 7% rise in its Consumer Price Index on Wednesday morning. This is the fastest rate of inflation since 1982.
The US dollar currency index, which measures the dollar’s performance against a basket of six of its peers, fell 0.7% to 94.94. The index fell to its lowest level at 94.90 – the lowest level since November 11, Reuters reported.
Edward Moya, a senior market analyst at OANDAHe said that Wednesday’s inflation report “triggered the dollar news event selling which was positive for bitcoin.”
Moya said that some traders may think of Bitcoin once again as a hedge against rising inflation but that this is “a far cry from reality” in the US, but the same is true of many emerging market countries.
“Small countries entering the crypto space may not be enough as a catalyst to bring prices back to record levels, but they should provide some fundamental support and help get bitcoin back to $50,000.”
Cryptocurrency Analyst Justin Bennett He tweeted, “We haven’t seen how [Bitcoin] Works during a macro downtrend from [dollar]. “
Ironically, we didn’t see how # bitcoin Acting during a major downtrend of the US dollar.
If anything, I will prove bullish for cryptocurrency.
Fun times ahead.
– Justin Bennett (@JustinBennettFX) January 11 2022
Over the past month, the correlation between Bitcoin and the S&P500 index has surged as both stocks and Bitcoin weighed on hawkish comments from the US Federal Reserve. delphi digital, In an email note.
The relationship between the dollar and bitcoin – Courtesy of Delphi Digital
This correlation is only set to increase, according to the independent cryptocurrency research firm.
“BTC has historically had low correlation with the stock markets. However, since 2020, we have seen more traditional players enter the crypto markets. With increased institutional adoption of BTC, we are likely to see higher correlation in the future.”
Meanwhile, a record number of investors own more than 0.1 ETH. The number of such investors reached an all-time high of 6.6 million on Wednesday, according to Glassnode data.
Ethereum Addresses with Balance ≥ 0.1 – Courtesy of Glassnode
The rally for ETH holders comes even as the asset’s price has fallen by nearly 10.8% since the beginning of the year.
read the following: Crypto work is stressful: Coinbase experiments with ‘4 Weeks Recharge’ per year to keep workers productive