Since last week, the market has seen a remarkable metamorphosis as a result of favorable news regarding the US CPI and inflation. The market recovered as a result of Bitcoin's ongoing growth. The hashrate for bitcoin set a record high of 271.34 EH/s.
This index quickly recorded an impressive increase of 10.26% on the second week of 2023, dispelling all negative movements about activities on the Bitcoin network in the past. Bitcoin mining difficulty since the most significant drop since China's BTC mining ban in 2021 in early December 2022 (about 7.32%).
The encouraging developments in the traditional sector are responsible for this remarkable turnaround. According to the most recent December 2022 CPI report, which the US released last week, experts anticipate that inflation will continue to decline to 6.5%. In 2023, US monetary policies should be able to take a deep breath.
The two "backbone" indicators used to measure the effectiveness of the Bitcoin network, mining difficulty and hashrate, have increased dramatically recently. This is likely due to the fact that investor confidence has been greatly boosted after shares of Bitcoin mining companies experienced a strong recovery at the same time that the US stock market (SP500 and Nasdaq) experienced a long rally with five straight green sessions.
Over the last seven days, BTC has steadily grown by 23%. The price is currently trading around the $20,800 level after peaking at $21,000.
Since BTC's resurgence, all other altcoins have made significant gains, rising above the lows reached in June 2022, when BTC initially fell to $17,500 as a result of the recent drop in price collapse of LUNA/UST, with Ethereum trading above $1550 and BNB trading above $300, respectively.