Crypto prices are higher ahead of key inflation data, bitcoin holds at $19,000

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Ether has huge­ly out­per­formed bit­coin since both cryp­tocur­ren­cies formed a bot­tom in June 2022. Ether’s supe­ri­or gains have come as investors antic­i­pate a major upgrade to the ethereum blockchain called “the merge.”

Yuriko Nakao | Get­ty Images

Cryp­tocur­ren­cies were slight­ly high­er on Wednes­day after investors shrugged off a high­er-than-expect­ed infla­tion report in antic­i­pa­tion of anoth­er key infla­tion indi­ca­tor due to come out on Thursday.

The price of bit­coin edged high­er by about 0.4% and was trad­ing at $19,072.00, while ether rose 0.6% to $1,290.73.

The Sep­tem­ber pro­duc­er price index, a gauge of final-demand whole­sale prices, came in high­er than expect­ed, sug­gest­ing to investors that the Fed­er­al Reserve is like­ly to con­tin­ue aggres­sive­ly hik­ing rates until infla­tion comes down.

Cryp­to and equi­ties investors alike are look­ing for­ward to Thurs­day’s con­sumer price index report.

Defi­ance ETFs CEO and chief invest­ment offi­cer Sylvia Jablon­s­ki called the PPI report a “benign” read­ing that investors are nei­ther over­ly dis­ap­point­ed nor over­ly excit­ed about. Bit­coin and ether have trad­ed in a nar­row range for about a month, with bit­coin “stuck” in the $19,000 lev­el, and their moves have been large­ly macro led as the cryp­to indus­try qui­et­ly builds new nar­ra­tives for the next bull run.

“Until we get past tomor­row’s CPI read and this earn­ings sea­son, and get more col­or from the Fed, cryp­to and equi­ties will stay in this trad­ing range and a lot of the investor funds that typ­i­cal­ly go into the mar­ket will remain on the side­lines,” she told CNBC.

“There is a sense that we’re clos­er to the bot­tom than not, but there also isn’t this urgency to get in from a lot of investors because of the short-term uncer­tain­ty,” she added. “Until then, cryp­to and any kind of growth assets remain in purgatory.”

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