Bitcoin Powers Past $69K: Crypto Rally Sparks on Milder US Inflation Data
Bitcoin Powers Past $69K: Crypto Rally Sparks on Milder US Inflation Data
The
Why the US Inflation Report Matters for Crypto
Inflation data drives markets because it hints at future interest rate moves by the Federal Reserve. Lower inflation means the Fed might cut rates soon, which boosts risk assets like Bitcoin and Ethereum. The latest Consumer Price Index (CPI) for January showed prices up just 2.4% year-over-year. That beat economist forecasts of 2.5%. Core CPI, stripping out food and energy, hit 2.5% as expected.
This softer print fueled hopes for easier money policy. Investors piled into crypto, pushing the total market cap up nearly 5% in 24 hours to $2.44 trillion. It’s a welcome relief after recent volatility.
Bitcoin and Ethereum Lead the Charge
Ethereum stole the show with a 7.5% surge, trading above $2,000 again. Its weekly rise hit 4.4%. ETH’s strength points to growing optimism around layer-1 blockchains and upcoming upgrades.
- Bitcoin (BTC): +4.5% daily, over $69K
- Ethereum (ETH): +7.5% daily, above $2K
Among top-10 coins, most posted gains. BNB edged up 1.7%, but Figure Heloc (FIGR_HELOC) dipped under 1%, the lone loser in the group.
Market Sentiment: Still Shaky Despite Gains
Prices are up, but fear lingers. On-chain data shows Bitcoin’s net unrealized profit/loss ratio at 0.18, deep in the “hope/fear” zone. This means thin profit buffers—rallies often hit sell walls, and drops can snowball as confidence wanes.
The Crypto Fear & Greed Index sits in “extreme fear,” though it ticked up from recent lows. Traders worry about echoes from the October 10 crash, which liquidated $20 billion in leveraged bets. Paul Howard, a senior director at high-frequency trader Wincent, called markets “fragile.” He noted ongoing jitters from that event.
Top Gainers and Losers in the Top 100
Smaller coins shone brighter. Pi Network (PI) topped gainers with 10% up. Midnight (NIGHT) followed at 9%. These moves highlight altcoin rotation during risk-on days.
World Liberty Financial (WLFI) led losers among big caps, down 2.3%. Still, losses were mild overall.
| Top Gainers | Gain |
|---|---|
| Pi Network (PI) | +10% |
| Midnight (NIGHT) | +9% |
Liquidations Ease but Remain High
Leverage played a role in the bounce. CoinGlass data shows 90,640 traders liquidated in 24 hours, totaling $260 million in losses. Bitcoin took the biggest hit at $118.2 million, Ethereum $56 million. That’s down from peaks but signals high risk appetite.
Lower liquidations helped stabilize prices, letting the rally breathe.
ETF Flows: Outflows Continue Amid Rally
Spot Bitcoin ETFs saw $410.4 million in net outflows on Thursday, worse than prior days. Ethereum ETFs lost $113.1 million. These redemptions contrast the price action, suggesting institutions are cautious or rebalancing.
Still, ETF inflows have driven BTC higher long-term. This dip might be temporary if inflation stays tame.
What’s Next for the ?
The
Ethereum’s push past $2K targets $2,200. Altcoins like PI and NIGHT may keep outperforming if BTC stabilizes.
Risks persist: sticky inflation or hot jobs data could reverse gains. Sentiment metrics warn of fragility—traders should use stops and avoid over-leverage.
Key Takeaways
- US CPI at 2.4% YoY beat estimates, boosting crypto.
- BTC over $69K, ETH over $2K lead gains.
- Fear & Greed in extreme fear; on-chain shows caution.
- Liquidations at $260M; ETF outflows heavy.
- Outlook: Bullish short-term if macro holds.
This rally reminds us crypto thrives on macro tailwinds. Stay tuned for more updates as markets evolve.
