Bitcoin Tumbles to Three-Week Low After CPI Release, Then Recovers

The past week saw significant price movements in various cryptocurrencies, but none as dramatic as Bitcoin's (BTC) response to the latest inflation data. The Consumer Price Index (CPI) release on Thursday triggered a sharp sell-off, sending BTC plummeting to a three-week low of $76,000. However, the bulls quickly stepped in and helped recover the losses within minutes.

BTC eventually climbed back above $79,000 but struggled to break through the resistance level. Meanwhile, Ethereum (ETH) soared to an eight-month high of $2,660 and now sits above $2,600 after a 6% weekly surge. Other notable gainers include ZEC, NEAR, DOT, and ICP.

The CPI data matched expectations almost perfectly, which may have contributed to the muted reaction from investors. The Federal Reserve's upcoming decision on interest rates remains a key driver of market sentiment. As attention turns to next week's Fed meeting, Bitcoin whales remain cautious, with no significant accumulation or distribution activity observed in their on-chain data.