Bitcoin has surged to a nine-month high of $26,533, marking its fourth consecutive day of gains. The cryptocurrency appeared to benefit from global market chaos following the recent collapse of Silicon Valley Bank. This comes as the U.S. Consumer Price Index (CPI) was reported at an expected rate of 6.0% Year-over-Year (YoY).
On Sunday, Bitcoin gained 7.6%, followed by a 9.1% increase on Monday. The cryptocurrency rose to its highest level since June 2022 on Tuesday, up around 10% on the day.
This surge follows a sharp decline in cryptocurrency prices in 2022, triggered by rising interest rates that led investors to abandon risky assets.
The recent CPI reading showed inflation is still rising, but at a slower pace than the previous month. This widely anticipated reading may lead the Federal Reserve to slow or even pause hiking interest rates next week, providing some relief to investors in the cryptocurrency market.
The crypto market suffered a series of collapses in 2022, including major exchange FTX, which left customers with significant losses. However, Bitcoin’s recent surge suggests a growing interest in the cryptocurrency, as investors look for alternative ways to protect their wealth against inflation and market volatility.
