Bitcoin Faces Volatility amid Inflation Fears; Ether Steals Limelight with 10% Surge
Summary:
Bitcoin was volatile, hovering around $47,000, as U.S. macroeconomic data suggested higher than expected inflation. The first American Bitcoin exchange-traded fund (ETF) was approved, igniting considerable investor interest. Ether stole the spotlight with a 10% jump in a 24-hour span, seemingly as traders shifted their focus following Bitcoin's ETF announcement. Other cryptos such as Solana and XRP also experienced double-digit returns.
Bitcoin (BTC) grappled with volatility at the start of U.S. trading on January 11, as newly released American macroeconomic data rekindled inflation fears. BTC/USD fluctuated in the run-up to the U.S. stock market opening, hovering around the $47,000 mark, as documented by TradingView and Cointelegraph Markets Pro.
The most recent Consumer Price Index (CPI) figures, contrary to anticipations of reduced inflation, suggested that rates are accelerating more rapidly than previously thought. The CPI, on a month-to-month basis for December, was reported at 0.3%, higher than the predicted 0.2%. On an annual basis, the CPI rose by 3.4%, exceeding the projected rise of 3.2%, according to the U.S. Bureau of Labor Statistics.
"The all items index increased by 3.4% for the year ending December, a more significant rise than November’s 3.1% annual increase," confirmed the accompanying official press report. However, while such index data typically stimulate volatility in risk asset markets, the CPI release in January simply enhanced the already existing strain in the crypto market.
The first American spot Bitcoin exchange-traded fund (ETF) was approved on January 10, with trading set to begin on January 11. Pre-market indicators hinted at strong investor interest before market open. On the given day, BTC/USD surpassed $47,700 on Bitstamp, remaining within its known bracket with $48,000 as its upper limit.
Commenting on the current status of the BTC/USD pair, trader Jelle expressed, "I have emphasized many times in the past - this is not a graph to bet against. The surge is inevitable."
In spite of Bitcoin’s ETF approval, Ether (ETH) stole the limelight with its 24-hour gains surpassing 10%, seemingly a result of investors gravitating towards it post the ETF announcement. Fellow trader Crypto Tony, attributing the recent Ethereum surge to Bitcoin investors not seeing their anticipated gains, commented "Most investors unimpressed by the BTC spike are now converging on ETH, hence the pump."
Within the day, ETH/USD achieved $2,666 on Bitstamp- the highest it has seen since early May 2022. Other cryptos like Solana (SOL) and XRP (XRP) reported double-digit returns as well.
Please note that this article does not provide investment advice or recommendations. All investments and trading moves entail risks; hence, thorough research is essential before making any decisions.
Published At
1/11/2024 5:06:58 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.