Bitcoin Trades Near $79,000 as US Inflation Data Looms
Bitcoin has been trading near $79,000 as investors wait for next week's US inflation data. A softer Consumer Price Index (CPI) could bring rate-cut expectations back into focus, which would be positive for cryptocurrencies.
A higher-than-expected reading, on the other hand, would support the 'higher-for-longer' view and keep pressure on crypto valuations. In the past 24 hours, Bitcoin was down 1.8%, while Ethereum dropped 2.3% to $2,452.
The global crypto market capitalization edged down 1.4% to $2.77 trillion, according to Coingecko. Among major altcoins, BNB and XRP were down 5.4%, while Tron was up 0.9%. The cryptocurrency market's sensitivity to US monetary policy was highlighted by the sharp reversal in prices.
Riya Sehgal, Research Analyst at Delta Exchange, said that the rally remains intact but will depend on macro data. Bitcoin needs to hold the $78,500-$79,000 zone after its rejection near $82,000, while Ethereum faces support around $2,440 and key level for recovery is $2,500.
Nischal Shetty, Founder of WazirX, noted that institutional crypto demand strengthened this week, with ETF products attracting approximately $510 million across four sessions as of September 4. Bitcoin's move above $81,000 and Ether's recovery above $2,500 showed improving spot demand and macro liquidity.