Bitcoin and Ethereum surged Tuesday, along with stocks, on positive news from the U.S. regarding inflation.
According to CoinGecko, the largest cryptocurrency market cap by value was $17,014, up 3.4% over 24 hours.
After the news about the collapse of FTX, a prominent digital asset exchange, the coin has fallen more than 17% over the past week.
Ethereum, the second largest cryptocurrency, rose 2.6% in 24hrs and was priced at $1,269. In the last week, the cryptocurrency that powers smart contract platform and blockchain was hit more than Bitcoin: It’s fallen nearly 20% in seven days.
Many of the crypto markets, including the largest digital assets by market capital, were in the green today.
This small recovery is due to U.S. stocks being buoyed Tuesday by new data from Labor Department’s Producer Price Index report showing a decrease in the cost for goods excluding energy and food. Experts believe this could indicate that inflation is finally under control.
Mati Greenspan, Quantum Economics CEO, stated that “inflation data seems to be turning,” which is really good for asset prices.
This year, the cryptocurrency market has largely followed the U.S. stock markets; inflation in the States is at an all-time high of 40 years. The Federal Reserve has been aggressive in raising interest rates.
Investors have resorted to holding onto greenbacks instead of taking on risk assets like Bitcoin and tech stocks. The U.S. Dollar has seen a significant increase in value over the past year, but today it is losing ground to other currencies based on new Labor Department data.
