Bitcoin, Ethereum and Stocks Rebound as Inflation Shows Signs of Reversing

Bitcoin and Ethereum surged with stocks on Tuesday on positive news from the United States regarding inflation.

At the time of writing, the largest cryptocurrency by market capitalization was up 3.4% in 24 hours, trading for $17,014, according to CoinGecko.

The coin is still down more than 17% last week after the broader crypto market took a beating following news of the high-profile collapse of digital asset exchange FTX.

Meanwhile, Ethereum, the second largest cryptocurrency, jumped 2.6% in 24 hours, priced at $1,269. The cryptocurrency that powers the smart contract platform and blockchain was hit harder than Bitcoin last week, dropping nearly 20% in seven days.

Much of the crypto market, including top digital assets by market capitalization, was in the green today.

The small rally comes as U.S. stocks were supported by new data from the Labor Department’s Producer Price Index report on Tuesday, showing a decline in the cost of goods excluding food and energy. According to experts, this could mean that inflation is finally under control.

Quantum Economics CEO Mati Greenspan said Decrypt that “the inflation data seems to be turning, which is really positive for asset prices”.

This year, the cryptocurrency market has mostly followed the US stock market; with inflation at its 40-year high in the United States, the Federal Reserve pursued an aggressive policy of raising interest rates.

This caused investors to get shot at risky assets, like tech stocks and Bitcoin, and hold on to greenbacks. The US dollar has appreciated this year, but today he lost ground to other currencies on new data from the Labor Department.

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