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Business News/ Markets / Cryptocurrency/  Cooling in US inflation, Shapella upgrade lifts crypto market; Bitcoin nears $30,500, Ether up 6%
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Cooling in US inflation, Shapella upgrade lifts crypto market; Bitcoin nears $30,500, Ether up 6%

Crypto markets witnessed a strong demand in both volumes and value terms on Thursday. Bitcoin moved closer towards $30,500 mark and Ethereum surged by over 6%.

Positive factors for cryptocurrencies market would be sharp cooling in US inflation, and also Ether's Shapella upgrade which is set to be released. Premium
Positive factors for cryptocurrencies market would be sharp cooling in US inflation, and also Ether's Shapella upgrade which is set to be released.

The crypto market continues it's gaining spree with the leader Bitcoin reaching near $30,500 levels, and Ethereum picking up by over 6%. There are a host of positives for cryptocurrencies. These would be sharp cooling in US inflation, and also Ether's Shapella upgrade which is set to be released. Globally, the market witnessed strong demand in both value and volume.

At the time of writing, on CoinMarketCap, the global crypto market traded at $1.25 trillion up by 2.29% over the previous day. The total volumes in cryptocurrencies zoomed nearly 20% to $48.78 billion over the previous day.

The market's biggest booster is inflation data. The US consumer price index of all items stood at 5% by end of March 2023 --- which is the lowest since May of 2021. It is also better than Street's expectations of 5.2%. However, inflation continues to stay above US Fed's target levels.

Bitcoin traded near $30,225 up by nearly a percent. The crypto has touched an intraday high of $30,462.48 --- which is the 7-day high and also a 1-month high. The crypto hit a 3-month high of $30,509.08 earlier.

CoinDCX Research Team earlier said that if March CPI will be lower than previous months, which could potentially benefit Bitcoin if the Federal Reserve decides to pause rate hikes.

Further, Ethereum which is the second largest cryptocurrency, traded near $1,982 up by 6%.

Both Bitcoin and Ether have recorded around 8% and 6% jump in 7 days.

On the latest cryptocurrencies performance, Sumit Gupta, Co-Founder & CEO, CoinDCX said: “The ETH Shapella upgrade is important on 3 counts: security, improved user experience, and more control. The upgrade involves making changes to two important layers in the network - the execution layer and the consensus layer. One of the most important changes being introduced - EIP-4895 - is a new mechanism that will improve the security of the Ethereum network. The ETH network will now be more efficient and reliable and provide an improved customer experience."

Gupta added, "Hopefully this will also inspire other blockchain platforms to make the transition to more sustainable consensus algorithms. This upgrade will enable users to stake, earn ETH rewards distributed automatically, unstake to regain full access to their accounts or restake to start over. Post this upgrade, the investor can expect high transaction speed and lower gas fee."

Meanwhile, Parth Chaturvedi, Crypto Ecosystem Lead, CoinSwitch said, "The much-awaited Shanghai upgrade and the US’s CPI data have hardly impacted Bitcoin and Ethereum prices. Despite the expectation from investors of an aggressive response from markets, BTC continued trading in the $30k zone and went below the mark multiple times in the last 24 hours, while ETH is in the $1.9k zone.

In alignment with Glassnode’s prediction, Chaturvedi added, "We don’t see any selling pressure on ETH, which is up ~1% in the past 24 hours, as of around 8 AM today. Around half an hour after the Shanghai upgrade was activated, around 285 withdrawals had been processed for about 5,413 ETH ($10 million worth). In high spirits, investors and blockchain developers have already begun mapping the next steps, i.e., the Verge, Purge, and the Scourge."

In other news, CoinSwitch stated that Argentina has made an official move in crypto by authorising its National Securities Commission (CNV) to launch a bitcoin (BTC) index-based futures contract. Additionally, El Salvador granted its first license for digital asset service providers to BitFinex yesterday. We can expect such moves to positively impact investor sentiment and boost market performance.

Investor sentiment seems to remain strong, he said.

 

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Published: 13 Apr 2023, 03:53 PM IST
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