Cryptocurrency Exchanges See Massive Rise in Bitcoin and Ethereum After IPC Data

Crypto markets turned green after Thursday’s CPI report showed an 8.2% inflation rate in the US. Markets saw a notable surge as Bitcoin and Ethereum surged over 5% and are currently up 3 .8%. CoinMarketCap data shows that major cryptocurrency exchanges saw an increase in trading volume, posting a triple-digit percentage increase.

Additionally, decentralized exchanges (DEXs) saw a similar increase in trading volume with millions of entries in 24 hours. Uniswap recorded $264 million in inflows, Kine Protocol $274 million, and dYdX saw the highest with $770 million in transactions.

Looking at global crypto exchanges, FTX trading volume increased by 180%, while Binance trading volume increased by 133%. All five of the top crypto exchanges posted an increase in trading volume by triple-digit percentages.

Also Read: 75% Of Young Americans Are Pro Crypto For Wealth Generation: Survey

Source: CoinMarketCap.com

The development suggests that investors are chasing short-term pumps to salvage their earlier losses. However, the markets may not remain green as both Bitcoin and Ethereum have traded in the red over the weekends for the past two months. The pump could be temporary as Bitcoin is unable to break out of its $21,000 resistance levels.

BTC is approaching the $19,800 level and could be rejected as it attempts to break above the $20,000 mark over the weekend. The current spike is attributed to institutional investors mostly pumping then dumping crypto based on IPC data.

Also Read: Ethereum Prediction: ETH Could Drop To $963 In 2022, Rise To $11,727 By 2030

What’s next for Bitcoin and Ethereum?

Bitcoin Ethereum BTC ETH Bull Run
Source: Unsplash

The markets are yet to break out of the bears’ tight grip and Bitcoin and Ethereum could face further corrections. Short-term pumps like the current ones are a common phenomenon in 2022, but they trade in the red most of the time. Several financial analysts have predicted that 2023 could bring a recession and drag the markets to new lows.

Bank of America has forecast that the US will face job cuts to the tune of $175,000 each month. Job cuts lead to insecurity that opens the door for global markets to stall in the midst of a recession.

Therefore, it is recommended to be cautious before taking an entry position in Bitcoin and Ethereum. BTC and ETH at $19K and $1.3K levels respectively are still considered high value ahead of a next drop.

Also Read: Cardano Price Hits 22-Month Low: Can ADA Rise From Here?

At press time, Bitcoin was trading at $19,825 and is up 4% in 24-hour trading. Ethereum was trading at $1,326 and was up 3.1% in day trading.

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