According to Glassnode, a blockchain intelligence company, Bitcoin miners and ordinary investors of the famous asset can now afford to smile following a prolonged crypto winter. BTC began a spectacular rally last week and is currently priced at $21,201, as per CoinGecko.
The current BTC price means the asset has had its value go above $20,100 for the first time since the downfall of the crypto exchange FTX. Also, this means that the mining business is profitable again, and even an average BTC investor would no longer sell at a loss if they sold their holdings now.
Glassnode reports that the average price many current investors paid for Bitcoin is approximately $19,500, and the average BTC price in the last 150 days has been about $18,100. In either case, BTC is way above that mark today as it trades at over $21,100.
The BTC rally means miners have a reason to smile. Currently, it costs nearly $18,700 to mine BTC, according to Glassnode. Therefore, with this digital asset’s value above $21,000, it means that most mining firms are back in operation and actually generating profits.
Also read:Consumer Price Index Report Boosts BTC Price
The BTC price spiked a few days ago following a report indicating that the United States inflation rates had started to slow down. Last year, the Fed raised its benchmark rate to mitigate further inflation in the country, bringing down both cryptos and stocks.
In December 2022, the Fed raised interest rates by 50 basis points, but it was significantly lower than the many 75 basis-point hikes throughout that year. Moreover, the Consumer Price Index report by the Bureau of Labour and Statistics shows that inflation dipped last month.
The Consumer Price Index report highlights that inflation measured last December fell from 7.1% recorded in the previous month to 6.4%. The report convinced investors that the Fed might be planning to soften its tough monetary policy.
Rate Raises Worsened Crypto Market In 2022
The rate hikes in 2022 were among the contributing factors to the harsh bear market witnessed in the entire crypto industry. As crypto prices plunged, several companies, including Three Arrows Capital, Voyager, and Celsius, began to shut down.
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