• Bitcoin surged over $19,000, posting its biggest one-day return in two months.
• Security firms such as OpenZeppelin believe blockchain bridges can benefit from security features built during the ongoing bear market to help avoid huge attacks like those seen in 2022.
• Other markets such as the S&P 500, gold, and the Nikkei 225 also saw slight gains.
The crypto markets were abuzz on Thursday with Bitcoin (BTC) making a massive 5.6% jump to surpass the $19,000 level. This marked the biggest one-day increase in two months for BTC, pushing its market capitalization over $355 billion. The CoinDesk Market Index (CMI) also saw strong gains, increasing by 4.0% to $926.
The sudden surge was likely due to news of the U.S. government’s latest consumer price index (CPI) reading for December, which showed a 0.4% increase in consumer prices. This was the first time consumer prices have risen since the start of the pandemic. The news likely pushed the markets higher as investors reacted positively to the potential for increased consumer spending.
In addition to the positive news in the CPI, security firms such as OpenZeppelin are predicting that blockchain bridges can benefit from security features built during the bear market to help avoid some of the carnage of 2022. OpenZeppelin believes that using these security features, such as detection systems, can help prevent attacks from malicious actors and make the blockchain networks more robust.
Other markets also saw slight gains on Thursday, with the S&P 500 increasing by 0.3%, gold rising by 1.3%, and the Nikkei 225 closing unchanged.
Overall, Thursday was a positive day for the crypto markets, with Bitcoin leading the way. Security firms are also looking to capitalize on the bear market by developing security features that can help protect blockchain networks from malicious actors. With consumer prices finally increasing, investors are likely to remain positive in the short term, which should help the markets continue to move higher.