Bitcoin has risen for 11 days in a row, the longest streak since the outbreak.

(Reuters)

[Financial Channel/Comprehensive Report] The largest cryptocurrency Bitcoin (Bitcoin) broke through the $21,000 mark on Saturday (14th), rising for 11 days in a row. The main reason is that investors are optimistic that the price of Bitcoin may bottom out. It may also have peaked.

The bankruptcy of the cryptocurrency exchange FTX has hit the currency circle. Bitcoin has not exceeded $20,000 since November 8 last year.

According to CoinGecko data, Bitcoin rose 7.5% to $21,299 on Saturday, while ether (ETH) broke through the $1,500 mark, an increase of about 9.7%.

The total market capitalization of the cryptocurrency sector has surpassed US$1 trillion (approximately NT$30 trillion) for the first time since early November.

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The annual growth rate of the U.S. consumer price index (CPI) fell to 6.5% in December last year, the lowest since October 2021.

The slower pace of interest rate hikes has helped risk assets grow. In addition to cryptocurrencies, the Nasdaq 100 index, which is composed of large technology stocks, has also risen for six consecutive days.

Sean Farrell, director of digital asset strategy at Fundstrat, believes that after the US announced a weak CPI, encrypted assets performed well, indicating that the correlation between the currency circle and the macro economy will not disappear soon.

He said: "The performance of cryptocurrencies this week is exciting. Unless the digital currency group DCG is forced to liquidate, there is a high probability that cryptocurrencies have bottomed out."

Before this rally, the price of Bitcoin had been stuck in a tight range of $16,000 to $17,000, and the strong rise surprised bears.

Hayden Hughes, chief executive of social trading platform Alpha Impact, said that the decline in CPI in the United States last month, coupled with the announcement that FTX liquidators have recovered US$5 billion (approximately NT$151.4 billion) of liquid assets, has given the crypto market many factors to influence. Forget the big environmental challenges, but overall the picture remains bearish.

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