Bitcoin reacts positively to inflation reports as crypto markets witness bullish trends

Inflation had reportedly slowed down, which prompted the rally.

Amidst cheers from the crypto space, Bitcoin rallied to come closer to $18000, with other altcoins also registering gains. Ethereum, Solana and other cryptos also rallied, bringing up the total market capitalization of the crypto markets. Touching its highest point in a month, BTC broke free of the tight range it was trading in, in the previous few days. Analysts expect this bullish trend to continue in the markets, with global economic conditions improving with cooling inflation.

The positive trigger in the crypto markets was set forward by the favorable CPI report released in the United States, indicating that inflation had slowed down from expected levels. Inflation numbers came in at 7.1%, compared to the expected 7.3%, which prompted investors and traders to help the markets witness an upward trend. A similar movement was seen in equity markets which also reacted positively to the news. 

BTC/USD price chart in 2022

Bitcoin is currently trading at around $17700 on December 14, 2022, with BTC/USD up by 0.17% in the last 24 hours. BTC/USD is trading above its 20-day EMA (16,806.73), with most altcoins trading higher in the last 24 hours. The upcoming interest rate hikes to be announced shortly are also expected to unlock a further rally in the markets, with most analysts anticipating a slower hike.

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