Cryptocurrency markets are showing significant upside this Thursday after trading sideways for most of the week. Yesterday’s CPI data shows that inflation remained unchanged for July, with the gasoline index falling 7.7%. The favorable CPI data is a significant driver for today’s crypto market bull run. Furthermore, cryptocurrencies registered a 6% growth in the overall market capitalization today, pushing the market to $1.16 trillion.
Key Points:
With the favorable CPI data release, Bitcoin’s price soared past the $24k level, rising by over 6% today. What’s more, the 24-hour trading volume for BTC is up over 67%, currently at $38 billion.
The substantial increase in trading volume and the rising prices could be the spark required to fuel a significant bull run for Bitcoin. BTCUSD could push past the $25k level in the next several days.
The good CPI data also contributed to bullish momentum for stocks. We saw NASDAQ rise by over 5 points yesterday, the S&P 500 is up 55 points this week, and Dow Jones is up 500 points. Since Bitcoin continues to follow the stock market’s movements, it is no surprise that BTCUSD is trading at its 1-month high of $24.5k.
If you thought Bitcoin’s performance was good, Ethereum’s is even better. ETH continues to amplify Bitcoin’s price movements, currently trading at $1,900 and nearing its 3-month high of $2k. With a substantial rise in trading volume, up over 85% in the past 24 hours, we could see ETHUSD break its 3-month high of $2.1k in the next few days.
While the weekend is approaching fast, and crypto markets usually slow down on Saturdays and Sundays, we could see cryptocurrencies continue their bullish runs throughout the weekend with today’s trading volume and upside momentum.
Breaking its 3-month high would create substantial bullish sentiment for crypto markets and cause many traders to consider opening positions to capitalize on the upcoming bull run. While it’s still too early to tell whether a market reversal is upon us, the short-term sentiment for Bitcoin and Ethereum is starting to change.
There’s no doubt that the favorable release of CPI (Consumer Price Index) data from the U.S. Labor and Statistics is causing today’s bull run. This is the first time in many months that we’ve seen unchanging CPI data that doesn’t reflect rising inflation. It seems the aggressive monetary policy employed by the Federal Reserve and the interest rate hikes are finally taking effect and helping reverse inflation.
Moreover, the sharp decline of over 7% in gas prices in July and the 4.6% fall of the energy index is providing hope for consumers, traders, and investors, that the worst is over and we can focus on a brighter future and an economic recovery.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any stocks.
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