Bitcoin experienced a notable dip this Wednesday, settling around $108,000 (approximately Rs. 94.8 lakh) after an unsuccessful attempt to hold ground near $114,000 (roughly Rs. 99.89 lakh) earlier in the week. Ethereum mirrored this trend, with its value hovering around $3,866.86 (roughly Rs. 3.39 lakh). The market’s caution is palpable as traders await the highly anticipated US Consumer Price Index (CPI) data, which is expected to provide crucial insights into the Federal Reserve’s future interest rate decisions. On Indian exchanges, Bitcoin is currently valued at about Rs. 94.7 lakh, and Ethereum at around Rs. 3.3 lakh.
Altcoins Show Resilience as Bitcoin Reacts to Impending Inflation Figures
Despite Bitcoin’s retreat, most altcoins maintained relatively stable positions within tight trading ranges. Key players like Binance Coin (BNB) were seen trading near $1,071.40 (approximately Rs. 93,910), while XRP hovered around $2.40 (roughly Rs. 210). Solana (SOL) was valued at about $184.91 (roughly Rs. 16,210), and Dogecoin (DOGE) at $0.1919 (roughly Rs. 16.80).
The CoinSwitch Markets Desk reported that Bitcoin pulled back after attempting to reach higher price points. Over the last 24 hours, crypto spot trading volumes surged to $240 million (around Rs. 2,10,330 crore). Furthermore, Bitcoin ETFs attracted $266 million (approximately Rs. 2,32,100 crore) in inflows, and Ethereum ETFs garnered an additional $99 million (roughly Rs. 86,760 crore). These figures hint at a renewed and growing interest in both Bitcoin and Ethereum following a short period of subdued activity.
Edul Patel, CEO of Mudrex, observed that Bitcoin’s efforts to surmount resistance levels were met with significant selling pressure. He attributed the current market weakness to a combination of geopolitical uncertainties and a scarcity of clear macroeconomic signals. Patel highlighted the upcoming CPI data as a potential game-changer: “If the reading comes in softer than expected, it could boost hopes for rate cuts, building momentum for risk assets like crypto.”
The CoinDCX Research Team confirmed that Bitcoin’s upward momentum was halted at the $114,000 mark. They indicated that the overall market sentiment remains bearish, suggesting a prolonged period of downward pressure. In contrast, other top 10 altcoins largely held their ground within a consolidated range. Memecore emerged as the top gainer with an impressive 8.31 percent jump, closely followed by DoubleZero at 5.5 percent, and MYX Finance and Ethena, each seeing over a 2 percent increase. Conversely, Mantle experienced a drop of over 9.54 percent, alongside Aster, Artificial SuperIntelligence Alliance, and Bittensor, all declining by more than 2 percent.
Patel reiterated that the upcoming CPI data holds significant potential as an immediate catalyst. He believes that if inflation figures come in lower than anticipated, the cryptocurrency market could reignite expectations of Federal Reserve easing, thereby renewing interest in various cryptocurrency projects.