Market News

Judge Rules on US Inflation Data: Bitcoin's Volatility Surges

Bitcoin saw significant price movements following the release of the latest US inflation data, with the premier cryptocurrency rebounding to $69,000.

This surge was fueled by a lower-than-expected Consumer Price Index (CPI), which registered an annual increase of 2.4%, sparking a relief rally in the crypto market.

The cooling inflation rates added roughly $70 billion to Bitcoin's market cap, lifting it from $1.31 trillion to approximately $1.38 trillion.

However, Bitcoin is not without its challenges, as spot Bitcoin ETFs faced $410 million in outflows amid the price instability, discouraging investors.

The situation worsened when nearly 900,000 jobs were revised downward by the US government, contributing to market uncertainty and further affecting Bitcoin's price.

Despite an initial positive reaction to the CPI report, the markets experienced volatility as concerns about inflation data and job growth continued to grow.

This mixed sentiment is evident in the Crypto Fear and Greed Index, currently reflecting "extreme fear," indicating investor skepticism about the rally's sustainability.

While Bitcoin’s short-term outlook remains uncertain, traders are advised to watch the upcoming inflation data closely, as these reports critically influence market liquidity and risk appetite.

In a market where volatility is the norm, continued attention to macroeconomic indicators, especially inflation, will be essential for understanding Bitcoin's potential movements.

Investors should remain cautious, as both opportunities and risks abound in the rapidly evolving cryptocurrency landscape.