Benzinga – Major cryptocurrencies were trading higher on Wednesday evening as the global market cap rose 2.5% to $880 billion at 7:38 p.m. EST.

Why It Matters: Bitcoin and Ethereum traded higher in tandem with stocks on Wednesday as investors awaited the U.S. Labor Department’s consumer price index (CPI) numbers, which are due Thursday morning.

Economists expect CPI to come in at 6.5% in December — lower than the 7.1% number reported in November.

On Wednesday, the S&P 500 and Nasdaq closed 1.3% and 1.8% higher respectively. At the time of writing the U.S. stock futures were seen trading flat.

“Right now might be the calm before the inflation storm as we are not seeing major positioning ahead of this CPI report. For some traders, they feel confident that either we get a soft landing or a not too bad recession,” said Edward Moya, a senior market analyst at OANDA.

“It might not be smooth sailing with across the board pricing declines with the December inflation report as core prices from a month ago might edge higher,” said Moya.

The analyst noted that institutional investors remain cautious and therefore cryptocurrencies are “slightly softer.”

“If risk appetite remains intact post inflation report, Bitcoin could make another run at the $18,500 level. If core prices prove to be troubling, Bitcoin could decline back towards the December lows,” said Moya, in a note seen by Benzinga.

Michaël van de Poppe said that Bitcoin has held on to the $17,300 level. “we probably continue rallying and then it depends on CPI. Most likely, given the current outlook, we correct temporarily around CPI, before we continue,” said the cryptocurrency trader. He said if CPI is beaten, tomorrow Bitcoin could touch the $18,500 mark.

As stated, #Bitcoin needed to hold the area around $17.3K, which it did.

In that regard, we probably continue rallying and then it depends on CPI.

Most likely, given the current outlook, we correct temporarily around CPI, before we continue.

If CPI is beat, tomorrow $18.5K pic.twitter.com/6tmxU3k07l

— Michaël van de Poppe (@CryptoMichNL) January 11, 2023

Separately, Van de Poppe expressed optimism for Bitcoin this year. He said “most likely” in the coming 6 months the apex coin could make a run towards the $30,000-$40,000 levels but most people “aren’t ready for it.”

#Bitcoin will make a run towards $30-40K this year, most likely coming 6 months and people aren’t ready for it.

— Michaël van de Poppe (@CryptoMichNL) January 11, 2023

Santiment said (USDT) is “continuing to see growth from sharks and whales who are loading up for the next [bull run].” The market intelligence platform said there are now 21,459 addresses that hold $100,000 or more of USDT, which is just 1% shy of a new all-time high.