- Bitcoin’s price war has intensified as the CPI report shocks investors.
- Bitcoin has rebounded slightly, but Bitcoin ETFs have faced outflows.
- A week of wild swings has exposed the shaky crypto sentiment.
In a week full of dramatic twists, Bitcoin has been riding the rollercoaster of market volatility, fueled by the latest U.S. Consumer Price Index (CPI) data. What started as a dismal weekend for the cryptocurrency has transformed into a thrilling comeback, showcasing Bitcoin’s resilience and the relentless push-pull of investor sentiment.
Bitcoin’s price rollercoaster continues as the latest CPI data triggers a dramatic swing in the cryptocurrency’s fortunes. After a sluggish start to the week, BTC has stormed back above $58,000, defying recent volatility.
CPI Data Shakes Bitcoin
The weekend was anything but smooth for BTC. It tumbled below $53,000 on Friday, barely scraping past $54,000 over the next two days. But as the new week dawned, Bitcoin’s fortunes shifted. It climbed back to $55,000 before an explosive surge pushed it over $58,000. This surge followed a sharp dip to $55,500 right after Wednesday’s CPI data release .
Sponsored
The CPI data, crucial for market watchers as it precedes next week’s Federal Open Market Committee (FOMC) meeting, initially spooked Bitcoin investors. In reaction, the crypto giant skidded from $57,000 to $55,500.
Yet, the bulls quickly rallied, propelling BTC to a high of nearly $58,500 earlier today, marking an 8-day peak. Currently, BTC is up more than 3% for the day, boosting its market cap to a staggering $1.15 trillion and solidifying its dominance over altcoins to 53.9%, according to CoinMarketCap .
Bitcoin ETFs See Massive Outflows
The drama wasn’t confined to Bitcoin’s price alone. Bitcoin ETFs in the U.S. took a hit, with net outflows totaling $43.97 million on Wednesday, reversing earlier inflows. The standout loser was ARKB, managed by Ark Invest and 21Shares, which saw a staggering $54.03 million in outflows.
Grayscale’s GBTC and Bitcoin Mini Trust also suffered, with $4.59 million and $511,230 withdrawn, respectively. Fidelity’s FBTC emerged as a bright spot in a twist of fortune, attracting $12.57 million and making it the day’s biggest gainer.
Invesco’s BTCO added a modest $2.59 million, while BlackRock’s IBIT remained stagnant, showing no new inflows since late August. Despite a trading volume spike to $1.27 billion, up sharply from the previous day’s $712.25 million, Investor sentiment is clearly on edge, underscoring the unpredictable nature of the cryptocurrency market.
On the Flipside
- The market’s reaction to the data is often volatile, and the price could experience a pullback in the coming days or weeks.
- The outflows from Bitcoin ETFs may not reflect a broader bearish sentiment. ETF flows can be influenced by various factors.
Why This Matters
The volatile reaction to CPI data reveals Bitcoin’s increasing correlation with traditional markets, suggesting it’s becoming a risk asset mirroring broader economic trends. As investors anticipate Fed rate hikes, Bitcoin’s price movements will likely remain closely tied to macroeconomic factors, making it essential for those tracking broader market trends.
Curious about the adoption of Bitcoin ETFs by investment advisors? This article explores the trends and sheds light on some interesting insights.
Bitcoin ETF Adoption By Investment Advisors Not Small: Bitwise CIO
Looking for updates on Standard Chartered’s crypto services? Dive into this article to learn more about their recent launch of BTC and Ether custody services in the UAE.
Standard Chartered Debuts Bitcoin and Ether Custody Services in the UAE
