The world’s largest cryptocurrency Bitcoin has made a spectacular comeback after a series of bad news last week to establish its highest value in 2023.
On the evening of March 14, the US announced the Consumer Price Index (CPI) for February 2023, an inflation measure of the world’s number one economy. True to the prediction of economic observers, US inflation in February reached 6%, continuing to have the 8th consecutive month of decline.
US CPI: +6% YEAR-OVER-YEAR (EST. +6.0%)
US CORE CPI: +5.5% YEAR-OVER-YEAR (EST. +5.5%)
— Tree News (@News_Of_Alpha) March 14, 2023
It was thanks to this news that Bitcoin (BTC) jumped to $26,386, a new high of 2023 and also the highest since June 2022.
Just 4 days ago, on March 10, BTC was still diving at $19,500 because of a series of bad news hitting the market, including:
And yet, the collapse of Silicon Valley Bank on March 10 also made the second largest stablecoin in the crypto market, USDC, heavily depeg, adding more pressure on the price of BTC.
By March 12, Circle confirmed that it would use all means to cover the deficit, including using company assets or even raising capital. USDC price recovered to $0.96 during that time.
In the early morning of March 13, the US government, because they did not want the bank run to spread, decided to intervene and pledged to compensate all depositors at Silicon Valley Bank, including Circle. The cryptocurrency market has since recovered strongly, bringing BTC to $ 22,600, and USDC also to the peg of 1 USD.
With the latest volatility, Bitcoin has recorded a 35% increase in the past 96 hours, or over $6,800 in value.
Ethereum (ETH) also rallied nearly 11% to $1,765, which is also the new peak of 2023 and the highest value threshold since September 2022.
Most of the current large-cap altcoins are also increasing by 5-10% following the upward momentum of BTC. The market capitalization reached 1.120 billion USD, recovering strongly since touching 930 billion USD at the end of last week.
The amount of derivative orders liquidated in the last 4 hours reached more than 128 million USD, with 116 million USD of which came from the pump in the past 1 hour. The number of short orders burned accounted for nearly 92%.