Bitcoin, the leading cryptocurrency, has lost the momentum it gained from yesterday’s positive Consumer Price Index (CPI) report.
The favorable CPI data initially boosted the crypto market, pushing Bitcoin close to $60,000. However, the price has since retreated. As of now, Bitcoin is trading at slightly over $58,000, a $2,000 drop from yesterday’s peak. The total market capitalization of all cryptocurrencies also decreased to just over $2.2 trillion.
Last Friday, Bitcoin hit a monthly low of $54,000, its lowest point in months, causing concern within the crypto community about whether it had reached its bottom. Over the weekend, Bitcoin rebounded to $58,000, but this rally was short-lived as bearish forces quickly pushed the price back down.
At the start of the business week, Bitcoin showed volatile behavior, fluctuating between $55,000 and $58,000. Despite attempts to break the $59,000 resistance level, it was unsuccessful. Yesterday’s positive CPI announcement led to a brief surge, with Bitcoin reaching a peak of $59,500 before retreating over $2,000 due to bearish pressure. Currently, Bitcoin is priced just over $57,000, with a market cap below $1.130 trillion.
Major altcoins followed a similar pattern to Bitcoin after the CPI release, initially increasing in value but losing momentum today. ETH, BNB, SOL, DOGE, XRP, and SHIB are slightly down, while LINK has dropped by more than 3%. Some altcoins experienced significant declines, including BONK (-11%), RNDR (-9%), BRETT (-7%), AKT (-7%), and STRK (-7%). However, a few altcoins like AVAX, TRX, TON, DOT, and ADA are currently performing well.
The U.S. Labor Department’s latest CPI report showed a 0.1% decline from May, bringing the 12-month rate to 3%, the lowest level in over three years. This positive data initially boosted Bitcoin and some altcoins, although these gains have now faded. CPI data impacts stock and crypto markets by tracking inflation.
A decline in inflation could lead the Federal Reserve to lower interest rates, benefiting riskier assets like Bitcoin. Additionally, cryptocurrencies are increasingly seen as a hedge against inflation.
Analysts and crypto enthusiasts have observed that Bitcoin’s price movements often influence the prices of other assets, a recurring trend in the market.
