Key Insights
- Bitcoin maintains its position above $119,000 following a daily increase of 2.2%, while Ethereum approaches the $4,800 record with a weekly rise of 17.2%.
- Significant altcoins like XRP and Solana have reported gains, prompting the broader cryptocurrency market cap to swell to $4 trillion.
- The U.S. consumer price index (CPI) data and ETF inflows are shaping crypto market dynamics, leading traders to hedge against risks related to the CPI report.
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Market Performance
Following Tuesday’s print on U.S. inflation, Bitcoin (BTC) and Ethereum (ETH) have shown strong performance. BTC is trading at approximately $118,986.76, and ETH at $4,300, showcasing a notable weekly surge that has it nearing its previous record.
XRP (XRP) increased by 3.2% to above $3.16, while Solana (SOL) rose to $176, and Dogecoin (DOGE) jumped to $0.2246.
Insights from Analysts
“This scenario has prompted a rare occasion where the rally of altcoins has catalyzed Bitcoin’s advance,” noted Alex Kuptsikevich, the chief market analyst at FxPro. He mentioned that Bitcoin has surpassed the $120,000 resistance, with investors now eyeing a target between $135,000 and $138,000.
The dynamics have shifted, spurred by positive legislative movements in the U.S. conducive to crypto growth and substantial inflows into ETFs. Such changes have greatly benefited Ethereum, which has surged by more than 21% in the past week and 45% within the last 30 days.
The Road Ahead
Today’s CPI is anticipated to show a minor increase to 2.8% annual inflation. According to QCP Capital, a softer inflation report could bolster expectations for a rate cut, conversely, a higher reading might hamper the ongoing rally and market sentiment.
