Bitcoin, the largest and most popular cryptocurrency topped $25,000 on Sunday for the first time since June.
The number one cryptocurrency traded at $25,012 at 11:20a.m. Hong Kong Time, up over 1.5% during the intraday, according to CoinMarketCap. Some analysts believe the bullish momentum is attributed to stimulation of the upcoming merge of Ethereum, while some suggest the bearish tone remains.
Cryptocurrencies struggled in the first half of the year due to the Terra collapse, high inflation, and the Federal Reserve’s policy of raising interest rates. These made the prices of other tokens such as Bitcoin falling by more than 50% from their peaks.
The lower-than-expected U.S. inflation data in the past week means that inflation is not as severe as imagined, so the Federal Reserve may take relatively moderate actions to control high inflation, and Bitcoin will rise accordingly.
The price of Bitcoin has however dropped sharply since topping $25,000. As of writing, BTC is trading at $24, 173 according to CoinMarketCap.