Bitcoin experienced a significant surge on Tuesday, rallying to an intraday high of $61,500 before settling in the $60,000 zone. This positive movement was attributed to investor optimism stemming from lower-than-expected inflation figures released earlier in the day. These figures suggest a possible easing of the Federal Reserve’s aggressive interest rate hikes, a factor that has weighed heavily on risk assets like cryptocurrencies in recent months.
However, not all cryptocurrencies shared in Bitcoin’s success. Ethereum, the second-largest cryptocurrency by market capitalization, saw a modest decline, trading within a narrow range of $2,650-$2,730. Dogecoin, the popular meme-based coin, also struggled, recording a drop of over 1%.
The broader cryptocurrency market exhibited mixed signals. While Bitcoin saw an increase in Open Interest, suggesting an influx of fresh capital into the market, the Long/Short Ratio dipped, indicating a cautious sentiment among traders. Despite the recent gains, the Cryptocurrency Fear & Greed Index remained in the “Fear” territory, highlighting ongoing uncertainty within the market.
Among the top gainers, THORChain (RUNE) led the charge with a 10.81% increase, followed by Immutable (IMX) and SATS (1000SATS). The global cryptocurrency market capitalization reached $2.13 trillion, representing a 1.14% growth over the previous 24 hours.
Meanwhile, the stock market also experienced a positive day, mirroring the bullish sentiment driven by the inflation data. The Dow Jones Industrial Average rose 1.04%, the S&P 500 gained 1.68%, and the Nasdaq Composite surged 2.43%. Investors are now awaiting the release of the Consumer Price Index (CPI) report on Wednesday, which is expected to provide further insights into inflation trends and the potential for future interest rate adjustments by the Federal Reserve.
Renowned cryptocurrency analysts remain cautiously optimistic about Bitcoin’s prospects. Widely-followed trader Rekt Capital expressed positive sentiment, highlighting the influx of buy-side volume, while emphasizing the need for even more volume to push Bitcoin above its recent highs. He also noted that a daily close above $61,700 would further solidify bullish sentiment.
Another prominent trader, Seth, predicted that the CPI report could also come in lower than expected, potentially propelling Bitcoin to $68,000. He believes that a daily close above a key moving average could trigger a significant price surge, setting the stage for a rally to this level.
