Crypto On Jan 13: Market Shows Signs Of Recovery As Bitcoin, Ether Rise Amid Inflation

Top cryptocurrencies saw an upsurge in prices for the second consecutive day Thursday. The global market cap was up 3.19% at $2.07 trillion as of 2.20 a.m. ET. Experts attribute the sudden surge to a rise in inflation.

The U.S. Consumer Price Index rose 7% in 2021, the fastest pace in 40 years, data released on Wednesday showed.

Bitcoin rose 2.83% to $43,757. The top coin gained momentum Wednesday after remaining bearish over the previous two days.

"Bitcoin bounced back to $44,000 levels as the US inflation level reached 7%. The next resistance is expected at $47,500 and key support is expected at $40,000," WazirX Trade desk told International Business Times.

The world's most sought after coin is expected to hit the $75K mark this year, Swiss Bank Seba has predicted. The bank CEO Guido Buehler noted that institutional investors will drive the price up.

Ethereum rose 3.75% to $3,345. "ETH saw a sudden burst of buying momentum in the last few hours with over 16,000 ETH being bought in an hour. Also, the Ethereum 2.0 Deposit Contract surpassed $30 billion in overall value," WazirX trade desk said.

All the top ten tokens were trading in the green. Meme cryptos Shiba Inu and Dogecoin surged over 11%.

While the new year brought a sluggish start for cryptos, the recent splash of green shows signs of a "bullish return" for the market.

"As investors hedge their bets back into crypto, digital assets once again reclaimed its status as a safe-haven asset. With US inflation showing more staying power, we can anticipate the crypto market to track its bullish return," CoinDCX Research Team told International Business Times.

In other news, NBA players Klay Thompson and Andre Iguodala from the Golden State Warriors team have decided to take a portion of their salaries in Bitcoin, the players stated Wednesday.

The crypto market is extremely volatile and experts recommend investors not make decisions based on the sudden shift in prices.