Crypto rally triggered despite FTX’s liquidation and US CPI hike
The global crypto market cap is rising despite the US Consumer Price Index (CPI) coming higher than expected and FTX’s liquidation approval.
According to a report by CNN, data from the US Bureau of Labor Statistics shows the CPI, used to measure inflation in the country, registered a 0.6% hike in August 2023, up by 3.7% from a year earlier.
The report notes that a 3.6% incline was expected, but the US Federal Reserve (FED) is unlikely to go for another aggressive rate hike.
Another event expected to take the crypto market down was the approval of FTX’s liquidation. The US Delaware District Judge John Dorsey authorized the bankrupt exchange’s plan to liquidate roughly $3.4 billion in digital assets.
However, to prevent a market-wide bloodbath, the sales limit is set to $100 million per week for FTX’s top crypto holdings. It’s important to note that DWF Labs and Justin Sun are reportedly considering purchasing FTX’s digital assets.
According to data provided by CoinMarketCap (CMC), the global crypto market capitalization rose by 1.2% in the past 24 hours — rising from $1.031 trillion to $1.05 trillion at the time of writing. This indicates a $12 billion hike despite the two bearish events on Sept. 13.
On the other hand, the global crypto trading volume has declined by 5.5% over the past day, falling to $29.2 billion.
The market-wide rally came while an opposite reaction was expected towards the FTX liquidation and the unexpected CPI data — with analysts predicting a short-term price squeeze for the flagship cryptocurrency, Bitcoin (BTC).
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