Bitcoin shows resilience despite US inflation data, trades above $26,000

Crypto market overview: Bitcoin continued showing some strength for the second consecutive day and currently trading around the $26,000 mark. Even altcoins like Solana traded in the green even as the US court allowed the bankrupt exchange’FTX’to liquidate the remainder of its asset holdings. In fact, the most significant impact of the liquidation is expected on Tron, DOGE, and MATIC.

The Crypto Fear and Greed Index also improved to reach the 45 mark.

Crypto Fear and Greed Index | Image credit: Alternative.me

Shubham Hudda, Senior Manager, CoinSwitch Markets Desk, said ‘BTC’s price action in the last 24 hours also withstood the US inflation data, which showed its highest one-month increase since June 2022. The data was higher than the expected 3.2 per cent, at 3.7 per cent. Bitcoin maximalists have long identified BTC as an inflation hedge. It would be interesting to see if BTC continues to hold the current price level. The support level to watch is $24,500.’

While talking to Republic about CPI data impact on the crypto market, Rajagopal Menon, VP, WazirX said, ‘The latest Consumer Price Index (CPI) data indicates higher-than-expected levels, but a Federal Reserve rate hike doesn’t seem imminent due to the slowdown in core inflation over the past year. The market sentiment has been boosted by Nasdaq’s interest in listing a spot Bitcoin ETF.’

‘There is a growing interest among users in purchasing Ethereum tokens even amidst possible liquidity issues,’ Menon Added.

Sudeep Saxena, Co-Founder, CoinGabbar, told Republic that the CPI data affected crypto more than anitcipation. Saxena said, ‘In the early hours, Bitcoin (BTC) has held firm above the $26,000 mark. This stability can be attributed to FTX’s successful approval to liquidate its cryptocurrency holdings through a bankruptcy court. Furthermore, the market has been influenced by slightly higher-than-expected headline inflation data in the United States.’

Mr Edul Patel CEO & Co-founder, Mudrex, while talking about stronger crypto prices yesterday, said, ‘A possible cause for this could be FTX gaining approval to sell its crypto assets following a bankruptcy court decision. Another probable cause could be the higher-than-expected headline inflation data in the US, which stands at 3.7 per cent on a YoY basis, up from the previous month’s 3.2 per cent.’

In other news, the US’s biggest centralised exchange, Coinbase, has confirmed its plans to integrate the Lightning Network onto its platform. This integration would mean that users will be able to send and receive BTC at a fraction of the cost and at a much greater speed.

Prices listed were last checked at 11:30 am today according to Coinmarketcap.com

Crypto market in last 24 hours

The crypto market trend remained highly positive in the last 24 hours with 47 of the top 50 cryptocurrencies traded in green. Bitcoin has also gained 1.19 per cent while Ethereum also moving above the $1,600 mark, gaining more than 1.8 per cent.

Other cryptocurrencies including BNB, XRP, Cardano, Dogecoin, Solana, Polygon, Litecoin, and Shiba Inu also tried to recover their losses in the last 24 hours. Solana gained more than 5 per cent despite the speculations on a major dump in FTX liquidations indicating that Solana bulls have again entered the market and buying on a corrected price.