Why Bitcoin, Ethereum, and Solana Jumped Over 12% This Week
The cryptocurrency market was on fire this week as nearly every major token jumped in value. A rising stock market, falling inflation, and dropping interest rates have all been tailwinds, but there was some potentially positive industry news as well.
According to data provided by S&P Global Market Intelligence, in the last seven days, Bitcoin (CRYPTO: BTC) is up 13%, Ethereum (CRYPTO: ETH) has jumped 12.8%, and Solana (CRYPTO: SOL) has risen 27.5% as of 9:45 ET on Friday morning.
I'll start with the macro environment because that's the biggest factor here. Consumer Price Index (CPI) data showed that inflation is easing and was actually negative month over month in December 2022. That has caused the market to assume that the Federal Reserve will stop raising rates as quickly as it has over the last six months and may even be forced to lower rates to prevent deflation. Interest rates have fallen in reaction to this data and stocks are rising. As an asset class that often trades in unison with the stock market and growth stocks, it's no surprise to see crypto popping this week.
Source Fool.com
