Bitcoin hits $25,000 for the first time since mid-June

The release of lower-than-expected inflation data in the U.S. sent Bitcoin up to $25,000 for the first time since mid-June. The second most frequent cryptocurrency, Ethereum has also been influenced by this event. 

Bitcoin has surged 2.2% to above $25,031, the highest level since June 13, 2022. As the Department of Labor reported a slowdown of consumer prices in the U.S., the value of the world's largest cryptocurrency hit a two-month high. Concurrently, Ethereum gained 2%, first reaching $2,000 since the end of May. This was facilitated by an optimistic market mood in regards to the transition of the blockchain software to a more advanced one. The process is known as "merge".

Sean Farrell, head of digital assets research at Fundstrat, claims that inflation data will be updated two days before the software release, which could also have a direct impact on the cryptomarket. Therefore, investors who prefer to put up the capital for long and medium projects, should use any dip as a buying opportunity. 

The industry struggled over the first six months in 2022 as the Federal Reserve declared rate hikes to drive against persistently high inflation. In this sense, the value of Bitcoin, Ethereum and other tokens dropped by more than 50%.

Considering that reported inflation data in the U.S. turned out to be lower than expected, possible easing in the Fed's policy is within reach. Thus, risky assets like the Nasdaq 100 Index increased, promoting the cryptocurrency growth. 

Bitcoin and Ethereum continue to gain momentum.

The merger of Ether networks is likely to take place on September 15th as stated by the project co-founder Vitalik Buterin. Earlier in the week, the final testing phase, alternatively referred to as Goerli, had been carried out. The ETH merger is revealed as a transition in how the cryptocurrency is minted and financial operations are authenticated through the new Proof of Stake protocol. 

The report of Genesis Global Trading goes to some investors possibly benefiting from a potential fork in the case of splitting ETH into two coins.

That comes with the views of Genesis strategists Noel Acheson and Willis Croft who claim as follows: “Etherium is currently affected by fundamentals (a post-merger tokenomics), a speculative element (probable ETH PoW fork that few have overseen), along with general macroeconomic sentiment. Realized volatility has rebounded from early-year lows, both reflecting rising investor interest and serving as a reminder of the cryptomarket unpredictability”.