After stock markets responded favorably to the most recent US inflation data on Wednesday, bitcoin hardly increased. However, the leading cryptocurrency remained close to a critical level as bulls appeared to test the year-to-date highs.
At 11 a.m. ET, BTC was fluctuating about $30,800 after reaching intraday highs of $31,000 on Coinbase.
On other exchanges, Ethereum, the second-largest cryptocurrency by market size, was trading near $1,900 as the overall market cap increased 1.5% to more than $1.24 trillion. The other top 10 earners at the time of writing had similar lack of expertise.
By early morning this week, Litecoin, which had fallen 10%, had partially recovered its losses and was just 5% lower.
The top three gainers in the top 200 by market cap during the past 24 hours have been 1inch, NEM, and Helium. All three of them had experienced double-digit gains because to HNT’s purchasing and selling at $1.48 highs.
Altcoin and Bitcoin transfers increased after the release of the CPI data.
The US Client Value Index (CPI) data for June showed that inflation had slowed year-over-year during the previous month, and this helped US markets open higher on Wednesday. Costs increased by 0.2% month over month and 3% year over year in June, with the latter figure slowing from the 4% seen in Could.
According to data released by the US Bureau of Labour Statistics, the CPI reached its lowest point in June, and the last time it did so was in March 2021.
Charlie Bilello, Chief Market Strategist at Artistic Planning Investor, tweeted on the CPI launch:
“The US CPI has decreased from a peak of 9.1% in June of last year to 3.0% right now. What is the cause of that decline? Reduce the cost of inflation for fuel, utilities that utilize fuel, used cars, clothing, new cars, meals prepared at home, electrical energy, and transportation. Shelter is the only major good that has improved inflation over the previous year, and it is a radically lagging indication (exact housing inflation is much lower with home prices/rents down YoY).
The Federal Reserve paused its cycle of interest rate increases last month, but it made clear that it was more likely to opt for a 0.25% increase on the next two occasions before the end of 2023. Both equities and cryptocurrency will depend heavily on how markets respond to impending central bank strikes.
According to Jim Bianco of Bianco Analysis LLC, markets still anticipate a 25-bps fee increase on July 26.
