Bitcoin surged over $21,000 on Saturday amid optimism that it may have bottomed and inflation may have peaked.
The largest cryptocurrency rose as much as 7.5 per cent to $21,299. It hadn’t been above $20,000 since November 8, and Saturday marked its 11th straight day advancing.
Second-largest Ether surged as much as 9.7 per cent, and other tokens such as Cardano and Dogecoin also notched solid gains.
The overall market cap of the crypto universe rose above $1 trillion for the first time since early November, according to data from CoinGecko.
The gains came amid a report on consumer prices last week that showed inflation declining in January from December levels.
The US Federal Reserve is on track to downshift to smaller interest rate increases following that further cooling, although it’s likely to keep hiking until price pressures show more definitive signs of slowing.
That’s helped boost risk assets such as the Nasdaq 100 stock index, which has gained for six straight days.
“Crypto assets performed well following the soft CPI print, suggesting that crypto’s correlation to macro is not going away anytime soon,” said Sean Farrell, head of digital asset strategy at Fundstrat.
“This week’s follow-through in price action is certainly encouraging,” and barring any forced liquidations from troubled crypto company DCG, “there is a high probability that the absolute bottom is in for crypto prices”.
The price of Bitcoin was stuck in a narrow range around $16,000 to $17,000 for weeks before this latest breakout.
The upward moves have caught shorts by surprise — crypto short liquidations have topped $100 million in five of the past six days, according to data from Coinglass.
Saturday’s total was the highest, topping $296 million.
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
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hall of shame
SUNDERLAND 2002-03
No one has ended a Premier League season quite like Sunderland. They lost each of their final 15 games, taking no points after January. They ended up with 19 in total, sacking managers Peter Reid and Howard Wilkinson and losing 3-1 to Charlton when they scored three own goals in eight minutes.
SUNDERLAND 2005-06
Until Derby came along, Sunderland’s total of 15 points was the Premier League’s record low. They made it until May and their final home game before winning at the Stadium of Light while they lost a joint record 29 of their 38 league games.
HUDDERSFIELD 2018-19
Joined Derby as the only team to be relegated in March. No striker scored until January, while only two players got more assists than goalkeeper Jonas Lossl. The mid-season appointment Jan Siewert was to end his time as Huddersfield manager with a 5.3 per cent win rate.
ASTON VILLA 2015-16
Perhaps the most inexplicably bad season, considering they signed Idrissa Gueye and Adama Traore and still only got 17 points. Villa won their first league game, but none of the next 19. They ended an abominable campaign by taking one point from the last 39 available.
FULHAM 2018-19
Terrible in different ways. Fulham’s total of 26 points is not among the lowest ever but they contrived to get relegated after spending over £100 million (Dh457m) in the transfer market. Much of it went on defenders but they only kept two clean sheets in their first 33 games.
LA LIGA: Sporting Gijon, 13 points in 1997-98.
BUNDESLIGA: Tasmania Berlin, 10 points in 1965-66
