Bitcoin Surges Above $21,000 Amid Inflation Optimism

The largest cryptocurrency rose 7.5% to $21,299 before losing ground as the day progressed. It hadn’t been above $20,000 since November 8, and Saturday marked the 11th consecutive day of gains. Ether, the second-largest token, increased by up to 9.7%, while Cardano and Dogecoin also gained. Solana increased by up to 35%.

According to CoinGecko data, the total market cap of the crypto universe surpassed $1 trillion for the first time since early November.

According to the preliminary survey results from the University of Michigan, short-term inflation expectations in the United States fell to their lowest level in nearly two years in early January, providing a larger-than-expected boost to consumer sentiment. A separate report showed that consumer prices rose 6.5% in the year to December, the slowest rate in more than a year.