Bitcoin Crosses Above $22,000

Bitcoin has once again risen above $22,000 for the first time since last week with ethereum also briefly crossing $1,550.

While some traders expected a further slide amid significant FUD, bitcoin is instead showing a surprising level of resilience.

Stocks rose too, reversing a slight red to briefly green amid volatility in the market as investors digest inflation data.

They were mixed, showing a slight fall but not at the rate since June. However, half of the rise in inflation is due to shelter, with shelter costs increasing because of the rise of interest rates.

Interest rates as a response therefore might become a self-defeating tool, with some proposing that cutting government spending could be another answer.

In addition it is not clear just how much interest rates are factoring at this point as proportionally another 0.25% on 4.75% may seem like just tinkering.

Stocks and cryptos therefore have been gaining this year with UK’s FTSE 100 index of the biggest companies reaching an all time high.

Germany’s DAX is also not far off from all time high following more than a decade long of underperforming US stocks.

European stocks may therefore start becoming appealing to investors once again, not least because interest rates will probably stay lower in EU.

In addition where crypto is concerned, it is not clear whether there might be some short squeeze play with the crypto clients serving Silvergate bank becoming the second most shorted stock.

That’s up 1.16% today after falling 87% from last year. COIN likewise is slightly up after significantly outperforming bitcoin this year.

The recovery for today however may well be brief and volatile as markets like to play during Fed’s chair speech or the CPI day.

Yet, it may be at this point neither quite matters to investors anymore, and where crypto FUD is concerned, that was selective enforcement with no broad rules applying to the industry.

They thus change little, if indeed anything, for the wider crypto market. Raising the question whether bitcoin is showing surprising strength and whether that means the bull is still on the table.

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• Source: https://www.trustnodes.com/2023/02/14/bitcoin-crosses-above-22000