Bitcoin briefly broke above $25,000 for the first time since mid-June as the cryptocurrency’s rally continued from lows on expected US inflation data and progress towards Ethereum’s big upgrade.
As Bloomberg reports, the largest cryptocurrency rose as much as 2.2% on Sunday to $25,031, its highest level since June 13. It is currently trading at $24,728.
Ethereum gained as much as 2% to $2,030.50, having topped $2,000 on Saturday for the first time since May 31 amid optimism over the completion of its long-awaited upgrade known as the Merge.
Cryptocurrencies saw a sharp decline in the first half of the year as the US Federal Reserve raised interest rates to combat persistently high inflation, with prices of Bitcoin, Ether and other tokens falling more than 50%.
With U.S. inflation data coming in below expectations last week, potentially paving the way for less aggressive tightening by the Fed, risk assets such as the Nasdaq 100 advanced – helping boost gains in cryptocurrencies, which have been strongly correlated with this stock index for months.