Bitcoin Surges 8% After U.S. Inflation Data
Date
5/15/2024 7:00:43 PM
(MENAFN- The Rio Times) Bitcoin surged over 8% within 24 hours, reacting to the latest U.S. inflation data.
The consumer price index (CPI) in the U.S. rose 0.3% in April, compared to 0.4% in March, according to the U.S. Department of Labor.
Over the past 12 months, inflation has accumulated to 3.4%. market expectations had anticipated a monthly increase of 0.4% and an annual inflation rate of 3.4%.
By late afternoon, Bitcoin traded at $66,400 before slightly retreating to $65,871. Traders identified this price range as a significant resistance level, indicating substantial selling pressure.
Altcoins also experienced gains alongside Bitcoin . Solana (SOL) increased by 7.8% during the day. Smaller market cap assets like Immutable (IMX) and Sei (SEI) saw jumps of 19%.
The rise in Bitcoin and altcoins is partly due to positive flows into U.S. spot ETFs . On the previous day, 11 such products recorded net inflows exceeding $100 million, according to data from SoSo Value.
These ETFs have accumulated $11.84 billion in net inflows since mid-January.
The broader cryptocurrency market remains buoyant, driven by renewed interest in thematic investments and decentralized finance (DeFi) applications.
Market experts highlight that assets related to infrastructure applications are seeing increased demand.
Cryptocurrency Market Insights
Furthermore, the recent softer inflation data has fueled optimism among investors, suggesting a potential end to aggressive interest rate hikes by the Federal Reserve.
This sentiment has led to a broader recovery in the cryptocurrency market, benefiting both major cryptocurrencies like Bitcoin and smaller altcoins.
This positive trend reflects a growing confidence in digital assets amidst changing economic conditions.
Bitcoin's resilience in the face of macroeconomic factors underscores the growing interest in digital assets.
Investors continue to see Bitcoin and other cryptocurrencies as viable assets despite volatility.
The recent gains illustrate the potential for significant returns in the cryptocurrency market.
The ongoing developments in the cryptocurrency space highlight the dynamic nature of digital assets.
As the market evolves, investors must stay informed and agile to capitalize on emerging opportunities.
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