• Inflation slightly improved in January, leading to a strong reaction in the crypto market. Bitcoin rose to over $22,900 and altcoins followed suit.
• Bitcoin is now holding above its midrange point of $21,480 and looks set to reach the top of its range at $25,225.
• Selected AI-focused altcoins such as SingularityNET and Fetch.AI have made excellent gains, along with other altcoins from different niches such as Render (RNDR) and Fantom (FTM).
Slight Improvement in Inflation Leads to Strong Crypto Market Reaction
A slight improvement in inflation for the month of January has led to the crypto market reacting strongly to the upside. Bitcoin rose strongly and altcoins followed its lead with both making some excellent gains so far on Wednesday.
Bitcoin Above Strong Support
Bitcoin climbed as high as $22,900 on the day, but it has since pulled back to around $22,700. Short term indicators suggest that this might be the local top for now, but the important thing is that the price is now holding nicely above bitcoin’s midrange point of $21,480. Looking further out in the longer term, it does look good for bitcoin here with a 47% increase since the start of this year being followed by a decent 12% correction in order to test what looks like a very strong support now at the midpoint of the range.
Selected Altcoins Make Most Of The Gains
As bitcoin becomes stronger the top-performing altcoins will likely far outperform it until bitcoin may crash through $25,000 and heads for $30,000. The two strong narratives of artificial intelligence and zero knowledge tokens have well and truly led the surge with SingularityNET and Fetch.AI from AI and Dusk Network from ZK category having really performed well. Other altcoins from different niches are also making some excellent gains including Render (RNDR) with distributed GPU cloud rendering which is up 355% since January 1stand Fantom (FTM), a fast layer 1 up considerably over same time frame..
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