Markets
This is why the prices of BTC, ETH, SOL and DOGE are increasing
The cryptocurrency market is showing signs of recovery today with the global market capitalization increasing by 3.49% to $2.52 trillion. Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Dogecoin (DOGE) and other cryptocurrencies recorded gains of 2-5%.
In particular, the price of BTC regained momentum above the $69,000 threshold, while the price of ETH surpassed $3,600. Altcoins have followed this significant upward momentum, mostly attributable to a series of recent bullish events. Let’s delve deeper into it.
US CPI Cools, Bullish for Cryptocurrency Kingdom
The trading landscape is highly bullish as US annual CPI
inflation cooled to 3.3%, lower than last month’s estimates of 3.4% and 3.6%. Annual core CPI eased to 3.4% versus 3.5% forecast and 3.6% last month, while month-on-month core inflation slowed to 0.2%, a significant decline in recent months.
Meanwhile, Fed Chair Jerome Powell appears to have maintained his stance on three rate cuts despite two suggested by Fed swaps. Additionally, it is worth noting that the US dollar index (DXY) fell to 104.3 .
Taken together, these factors appear to have contributed to the cryptocurrency market’s recovery, sparking investor enthusiasm in one of the world’s largest economies.
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Bitcoin and Altcoin prices and on-chain statistics
After the above news emerged in the market, the price of Bitcoin rose by 4.29% to settle at $69,707.75. Data from CryptoQuant further underlined the recent presence of significant buying pressure on the cryptocurrency. Over 20,000 BTC were recorded moving into wallets during the recent correction in the flagship cryptocurrency, underscoring a prevailing bearish buying sentiment among cryptocurrency market participants. This comes as a bullish factor, in line with the recent increase in price action.
Meanwhile, ETH price increased by 2.90% to $3,629. This broader recovery is also in line with the massive recovery Ethereum exchange outflow registered by Coinbase, a centralized exchange. Data from CryptoQuant shows that over 336,000 ETH were withdrawn, marking the largest outflow of trades year-to-date.
At the same time, Solana (SOL) rose 5.10% to $160, and Dogecoin (DOGE) rallied more than 7% to $0.1492. The day started on a bearish note for the most part cryptocurrencies. However, recent developments have occurred, causing an optimistic ripple effect.
Data from Coinglass suggested that the OI of BTC futures increased by over 3% in just 4 hours after the CPI announcement. Over the same period, the CME Bitcoin Futures OI jumped 2.79%.
The OI of Ethereum futures also jumped more than 2% in the last 4 hours. Over the same time frame, DOGE Futures OI has seen a notable increase of 13%.
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