The fact that the leading cryptocurrency Bitcoin reached $ 19,000 after a long break brought many questions about the course of the asset.
The asset is up 5% over the past 24 hours, giving the long-declining crypto market a breather.
The main reason for Bitcoin’s rise is the risk sensitivity of other markets.
Jake Gordon of Bespoke Investment Group told Bloomberg that BTC is traded against equities and other risky assets.
The Nasdaq index, which is typically traded with Bitcoin, also managed to close the day in green, although it experienced some volatility with the released inflation data.
Markets seem satisfied with the December CPI report, which shows that inflation has decreased. Still, it remains unclear whether the Bitcoin rally will be sustainable.
However, the markets need to be prepared for more volatility due to the earnings reports to be announced by the big banks tomorrow.
Bitcoin is trading at $ 18,851 at the time of writing, according to data from the Binance exchange.