The largest cryptocurrency, Bitcoin (BTC)
$82,970, has managed to find stability above $80,000 after retreating to $76,000 due to ongoing selling pressure. This recovery in Bitcoin has also triggered upward movements in altcoins. The upward trend in both Bitcoin and altcoins has led to a 0.91% increase in the total market value, which now stands at $2.64 trillion. As the market shows signs of recovery, the eagerly awaited U.S. Consumer Price Index (CPI) data has just been released.
Impact of CPI Data on the Cryptocurrency Market
The inflation data in the U.S. is significant enough to influence the short-term trends in the cryptocurrency market along with global markets, making February’s CPI figures highly anticipated. Those figures have been released recently.
U.S. Inflation Data and Cryptocurrencies
The annual CPI was expected to be 2.9%, but it came in at 2.8%. The monthly CPI was predicted to be 0.3% but was recorded at 0.2%. The core CPI, which excludes volatile food and energy items, was expected to be 3.2% annually and was reported at 3.1%, while the monthly figure was 0.3% but came in at 0.2%.
Current Status of Bitcoin and Altcoins
Experts suggest that the CPI data falling below expectations is positive for Bitcoin and altcoins, potentially sustaining the upward price movements. According to technical analysis, if Bitcoin maintains its position above the $82,000 threshold, a target of $90,000 may come back into focus. The MACD indicator shows positive divergence on the four-hour price chart, while the RSI stands at 44.37, indicating a neutral zone. The largest altcoin, Ethereum (ETH)
$1,920, is stabilizing at around $1,910. Analysts caution that if ETH falls below $1,900, it may test the $1,800 support level. Conversely, maintaining above the $1,900 mark could allow for a breakthrough past the $2,000 level once again.
Meanwhile, altcoins like XRP and Dogecoin
$0.149564 (DOGE) are gaining attention with increases of up to 5%. The overall trend of altcoins appears to align with the general market movement, although analysts warn against potential volatility that may arise following the CPI data.
