Bitcoin Surges Above $20,000 as US Inflation Rates Cool and FTX Collapse is Forgotten

Paragraph: bitcoin is now trading above $20,000 for the first time since the collapse of sam bankman-fried’s ftx. bitcoin’s “realized price” is currently estimated to be around $19,700, and it is trading well above the average price of $18,000 in the past 155 days. bankman-fried, the founder of ftx, has been charged with eight financial crimes and is awaiting trial. numerous overleveraged companies, including celsius, voyager, and three arrows capital, went belly-up following a bank run on the exchange.

Paragraph: the federal reserve has been raising its benchmark rate to quell record-high inflation in the united states. the bureau of labor and statistics indicated in its consumer price index report that inflation measured in december dipped to 6.5%. the fed last raised interest rates in december by 50 basis points, causing the price of bitcoin to plummet due to rate hikes throughout 2022. customer funds on the ftx platform were not fully backed.

Paragraph: bitcoin rallied last week following news that inflation rates in the u.s. have started to cool. the fed is taking its foot off the gas, giving crypto investors reason to feel optimistic. it is now profitable again for mining companies to run the hardware necessary to mine the bitcoin network, as it currently costs roughly $18,800 to mine bitcoin. this news has provided a boost of confidence to the crypto market and has allowed bitcoin to once again reach the $20,000 mark.

By Evey Lovelace

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