The cryptocurrency market added $150 billion dollars in a single day thanks to better than expected inflation news from the US Consumer Price Index report.

The crypto market has been waiting for some kind of positive news about inflation to help spur trading. With crypto trading seen as a risky investment, many investors will not commit to buying tokens when inflation is high and the economy is doing poorly. So, as soon as news broke on Wednesday that consumer prices were lower than expected and inflation was potentially dipping, the floodgates of trading opened up.

Ethereum (ETH) gained as much as 5.9% during the height of the trading frenzy, and Bitcoin (BTC) earned 8.19%. Both of these figures account for movement in a period of less than 24 hours, and these are the biggest jumps we have seen these coins make in months.

Where Is the Market Headed?

Since the price spike, the cryptocurrency market has calmed down considerably. Most coins have lost a lot of ground from their recent gains, but many of them are still above where they were before the price spike started.

The current slowdown could easily be the calm before the storm, and we believe the crypto market has another surge in it. New attention has been brought to the crypto market, with headlines running the massive gains. That is sure to draw in new investors who are waiting for the price to jump again and who may buy up tokens while the trading frenzy has died down.

The surge occurred because of good inflation news, and that has not changed. So, it is reasonable to expect the rates to continue to rise over the next few days. If any further inflation news is released that points in a positive direction, we should see another price jump.