Bitcoin, the primary crypto asset has lost the momentum it garnered from yesterday’s Consumer Price Index (CPI) numbers which was positive and gave the crypto market a boost.
Bitcoin pumped to a near $60,000 following the announcement of the United States CPI yesterday but appears to have retraced from the surge at the time of the report. The total market capitalization of all crypto assets also dropped to a little over $2.2 trillion.
Bitcoin currently retails at slightly over $58,000 a $2000 drop from yesterday’s price.
Last Friday Bitcoin hit a shocking month low of $54,000. This was Bitcoin’s lowest point in Months and it rattled the crypto community which wondered whether the crypto asset had reached its bottom. Over the weekend the asset pumped from $54,000 to $58,000 but this didn’t last as the crypto bears pushed back the asset southwards in a matter of hours.
This Monday the crypto asset reacted to the start of the business week with a volatile performance bouncing between the range of $55,000 to $58,000. The asset during the week tried to break a $59,000 resistance level but failed.
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Yesterday the US announced its CPI numbers which were positive leading to a pump by Bitcoin. The asset reached a peak of $59,500 before activities of crypto bears deflated its momentum driving down the asset by over $2000.
The current price of Bitcoin at the time of the report is a little over $57,000 with its market cap under $1.130 trillion.
Major Altcoins reacted in a similar pattern to Bitcoin following the release of the CPI numbers yesterday. They initially pumped in price value but all lost the steam today.
ETH, BNB, SOL, DOGE, XRP, and SHIB are slightly in the red, while LINK has jumped by more than 3%.
Some altcoins heavily dropped in price value and they include BONK (-11%), RNDR (-9%), BRETT (-7%), AKT (-7%), and STRK (-7%).
Some altcoins however are currently in green deviating from the rest. They include AVAX, TRX, TON, DOT, and ADA.
The United States Labour Department announced yesterday the latest Consumer Price Index numbers in the country and the numbers were positive.
The consumer price index, a broad measure of costs for goods and services across the U.S. economy, declined 0.1% from May, putting the 12-month rate at 3%, around its lowest level in more than three years. The news rubbed off a positive sentiment to the crypto market leading to a surge in the price of bitcoin and some altcoins which they have all appeared to have lost.
What to know
- CPI data affects the stock and crypto markets in so many ways. CPI data is used to track inflation, which is the rate at which prices are rising. A decline in inflation could prompt the Federal Reserve to lower interest rates, which could benefit riskier assets such as Bitcoin. In addition, crypto assets are increasingly viewed as a hedge against inflation.
- The price of Bitcoin affecting the price of other assets has been a recurring trend observed by most analysts and crypto enthusiast.
