Bitcoin Tops $30,000 Ahead of Key Inflation Data

The price of Bitcoin rose on Tuesday, reaching the important psychological threshold of $30,000, as investors awaited new inflation data later in the week that could have a bearing on crypto prices.

Bitcoin, the biggest cryptocurrency by market cap, jumped more than 3% to $30,099 after surging as much as 7% on Monday evening. Not since the middle of 2022 has Bitcoin traded higher than $30,000. Ether, the world’s second-largest coin, was more muted, but still edged up by 1% to $1,917.

Analysts believe that Bitcoin’s resurgence is not done. Now that it has breached $30,000, it is expected to advance further toward $40,000, a development that would encourage more investors to get back on board the asset class.

Crypto assets are expected to benefit if this week’s scheduled consumer price index data comes in at levels that give the US Fed enough reasons to consider pausing interest rate hikes.

Cryptocurrencies have rallied this year. In 2023, Bitcoin has gained more than 80%, while Ether has edged up over 60% during the same period. Although the price levels of the two coins move in tandem much of the time, recent bank closures have seen Bitcoin outstrip Ether as investors have preferred the former as a more reliable asset. To complicate matters for Ether this year, its major technology upgrade is expected to bring a wave of negative sell pressure, paving the way for Bitcoin to surge further ahead.