Hassan Maishera
TL;DR
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Bitcoin rallied above $59k following the CPI report but immediately went back below $58k.
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Traders are optimistic of a rate cut soon as the inflation in the US continues to decline.
BTC Briefly Rallied Above $59k After a Positive CPI Report
The cryptocurrency market recorded a rollercoaster trading pattern on Thursday as bullish traders gave back some of the gains they briefly recorded.
Bitcoin’s price surged from the $57k region to trade above $59k following the CPI report but immediately retraced and is now trading below $58k once again. At press time, Bitcoin’s price stands at $57,209, down by more than 1% in the last 24 hours.
The brief rally was sparked after the CPI report, with market participants now increasingly convinced that the Fed was going to trim rates at its September meeting.
The US government's Consumer Price Index (CPI) report on Thursday morning revealed that inflation continued to decline in June. the CPI rate came in at a negative 0.1% pace against forecasts for a gain of 0.1% and May's 0.0% read.
Y-o-Y, the CPI was higher by 3.0% versus expectations for 3.1% and 3.3% in May. meanwhile, the Core CPI (without food and energy costs) was better than expected, increasing by 0.1% in June compared to the 0.2% expected by analysts and May's 0.2%. Core CPI year-over-year was up 3.3% versus forecasts for 3.4% and June's 3.4%.
Despite this positive report, Bitcoin failed to break above the $60k barrier. BTC briefly touched $59,200 shortly after the report but has since lost more than 1% of its value and is now trading below $58k once again.
The broader crypto market is mixed, with some altcoins trading in the green while others remain bearish. Toncoin is the best performer amongst the top 10 cryptocurrencies by market cap, up by nearly 3%. Meanwhile, XRP and Cardano (ADA) are the other top cryptocurrencies still trading in the green.
Solana is the worst performer in the top 10 (down by 3%) while Ether (-0.3%), BNB (-0.70%), and Dogecoin (-1.6%) are also bearish. With these mixed performances, the total crypto market cap now stands at $2.12 trillion, down by 1% in the last 24 hours.
