Major coins rallied on Wednesday after July consumer price index data indicated a slowdown in inflation. The global cryptocurrency market cap rose 3.9% to $1.1 trillion at press time.
| Coin | 24-hour | 7-day | Price |
|---|---|---|---|
| Bitcoin BTC/USD | 3.9% | 4.2% | $23,957.31 |
| Ethereum ETH/USD | 8.7% | 14.3% | $1,851.18 |
| Dogecoin DOGE/USD | 2.7% | 7.7% | $0.07 |
| Cryptocurrency | 24-Hour % Change (+/-) | Price |
|---|---|---|
| Celsius (CEL) | +23.1% | $2.31 |
| Lido DAO (LDO) | +18% | $2.68 |
| AAVE (AAVE) | +12.4% | $110.60 |
See Also: Best Crypto Debit Cards
Why It Matters: Among the major coins, Ethereum led in gains — rising nearly 9% intraday, compared with Bitcoin’s 4% gains.
Risk assets shot up as data from the U.S. Labor Department indicated that headline CPI rose 8.5% in July compared with 9.1% in June. The number was below economist estimates of an 8.7% rise. At press time, the S&P 500 and Nasdaq futures rose 0.2% and 0.3%, respectively.
“Wall Street is now anticipating a Fed pivot in September as pricing reflects a half-point increase. If inflation continues to drop, the bull-steepening trade will gain further momentum,” said Edward Moya, a senior market analyst with OANDA.
“Bitcoin might rally significantly if this broad risk-on rally continues. The majority of the crypto space is still skeptical of the Bitcoin rebound that started in mid-June, but momentum traders may pounce on this opportunity if Bitcoin rallies above the $25,000 level. A Bitcoin breakout could target the $28,400 level initially,” said Moya, in a note seen by Benzinga.
Cryptocurrency trader Michaël van de Poppe tweeted that the apex coin rejected resistance and expects some consolidation between the $23,200 and $23,400 levels to sustain support. He expects the trend to target the $27,000 to $28,000 levels.
#Bitcoin rejecting at resistance again, as we've seen a positive reaction from a lower CPI than expected.
— Michaël van de Poppe (@CryptoMichNL) August 10, 2022
I'm seeing some consolidation here, looking at regions around $23.2-23.4K to sustain support.
If so, trend can continue targeting the $27-28K levels. pic.twitter.com/Ar7KskqvtY
The lower inflation number will “bode well” for cryptocurrencies, while the dollar index, a measure of the greenback’s strength against a basket of six other currencies, was down immediately to channel support, noted trader Justin Bennett on Twitter. At press time, the dollar index was 0.05% higher at 105.25.
CPI YoY: 8.5%
— Justin Bennett (@JustinBennettFX) August 10, 2022
Consensus: 8.7%
It should bode well for #crypto. $DXY immediately down to channel support. pic.twitter.com/Mt8NLy0ses
The ratio of Tether (USDT) on exchanges has risen from 19.7% in early May to 42% over three months. This can be an indicator that traders took profit as prices of cryptocurrencies rose or a “sign of a 2-year high in buying power, tweeted Santiment, an on-chain and social analysis platform.
The ratio of #Tether on exchanges has gone from 19.7% on May 9th to a whopping 42.0% three months later. This can be viewed as both a signal that traders have taken profits as prices have rebounded, as well as a sign of a 2-year high in buying power. https://t.co/Xmscnu5NOb pic.twitter.com/UFuYAkrWlO
— Santiment (@santimentfeed) August 10, 2022
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
