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Bitcoin reacts to CPI data, Ripple Labs expresses interest in bankrupt Celsius

Yahoo Finance reporter David Hollerith looks at how crypto markets, particularly bitcoin, is responding to CPI data and also details Ripple Labs' interest in Celsius.

Video transcript

RACHELLE AKUFFO: Lower than expected CPI data driving markets higher today. And that includes the crypto sector. Our very own David Hollerith is here with more on how the inflation print has pushed cryptocurrency prices higher. So Dave, what's the latest?

DAVID HOLLERITH: Yeah, Rachelle, it's clear that CPI, slowing inflation is still clearly good for crypto. But I think it's actually interesting. Bitcoin showing about a 2% to 3% rise on the day. Other cryptocurrencies that are smaller and more risk sensitive are showing sort of a higher gain. But overall, sort of the good news of slowing inflation hasn't appeared to have impacted the market quite as much as maybe some investors had hoped.

Ed Moya, on the other hand, has said that if this kind of risk-on rally for just risk-on assets continues, cryptocurrencies could be pushed higher with momentum traders stepping in. He's sort of looking at $25,000 for Bitcoin as a sort of a crucial level. He says if the price of Bitcoin can get above that point, momentum traders could bid it up to 28k.

That being said, financial contagion is not completely gone from the sector yet. Earlier this week, we saw CoinFLEX, a smaller crypto exchange, file for restructuring. Yeah, and I think speaking of bankruptcy, there's this Reuters report.

RACHELLE AKUFFO: I mean, as you're mentioning there, obviously, still a lot of carnage still in the crypto space. So what's the latest with Celsius? You talked about some of these bankruptcies, Celsius obviously a big one that people are following.

DAVID HOLLERITH: Sure, yeah. So the latest that we've heard is that Ripple, which is sort of part of the XRP ecosystem, has said that they're interested in acquiring some of Celsius's assets. And they haven't really been clear about whether or not they want to acquire all of the company or just parts of their assets. What we do know from court filings is that Celsius is seeking to retain an investment banking firm to help sort of market their assets.

And so, in that scenario, what would happen is, in a best case scenario, we would see something like a bidding process start in the coming weeks, in which case they'd try to have an auction set off, where buyers would come in and bid. But we don't know how many other buyers there are at this point outside of Celsius.

AKIKO FUJITA: David Hollerith, never a dull day in the crypto space. Appreciate you staying on top of the headlines there.