On Wednesday, cryptocurrency markets reacted to the latest US Consumer Price Index (CPI) data, which indicated that inflation rose by 2.5% over the past year. This figure, reported by the Bureau of Labor Statistics (BLS), was lower than the expected increase of 2.6%, resulting in slight declines in the value of Bitcoin. After the report, the price of Bitcoin fell to $56,500, representing Down 1.5% from the previous day. Other cryptocurrencies, such as Ethereum andSolana, have also seen declines, highlighting cautious sentiment across the market..
The latest inflation figures are poised to inform the Fed’s approach at its next policy meeting. As the central bank prepares for a possible series of interest rate cuts amid slowing inflation, there is a growing consensus among traders on an initial 0.25% cut. , the prospect of such a cut has escalated significantly from 67% to 85% after the release of the CPI. Historically, interest rate cuts have produced mixed results for Bitcoin, with the market often experiencing volatility in response to such changes in fiscal policy.
In addition to inflation data, the US labor market plays a crucial role in determining the trajectory of Bitcoin. Recent reports revealed a slowdown in job growth, with only 142,000 new jobs added versus the forecast of 160,000 for August. Such discrepancies previously affected Bitcoin’s price movements; for example, the asset fell to $53,300 after the weak jobs report, underscoring the correlation between economic performance and valuation of digital assets. Analysts note that the continued decline in job growth could lead to a reconsideration of digital assets as risky investments.
Looking ahead, expected interest rate cuts and evolving labor market conditions are expected to reshape the cryptocurrency financial landscape.
Huge flows of Bitcoin and Ether funds on
Data from sosovalue.xyz showed that the 12 spot bitcoin ETFs saw inflows of $116.96 million on Tuesday. Fidelity’s FBTC fund was the group’s flagship, raising $63.16 million, followed by Grayscale’s Mini Bitcoin Trust. with $41.13 million. Ark Invest and 21 Shares’ ARKB fund also received $12.68 million in inflows.
The remaining nine funds saw no movement and recorded no gains or losses during the session. The addition of $116.96 million increased total net inflows since Jan. 11 to $17.04 billion. Collectively, the 12 funds now hold $52.2 billion in bitcoin, which is equivalent to 4.59% of bitcoin’s total market capitalization.
Along with Bitcoin’s performance, Ether ETFs also saw positive inflows on Tuesday. The nine funds received $11.44 million, with Fidelity’s FETH fund leading the way, with $7.13 million. Blackrock’s ETHA Fund followed. $4.31 million. While $11.44 million adds to Ether reserves, it is still small compared to the $562.06 million in net outflows that have been withdrawn since July 23.
The nine ETFs currently hold $6.53 billion in Ether, accounting for 2.28% of Ether’s market capitalization. Tuesday’s trading volume was $712.27 million for bitcoin funds, while ether-based ETFs traded $102.87 million. , Bitcoin is trading for $56,813 and Ether is exchanged for $2,330. His odds of winning the election have dropped, from 52% as of Tuesday morning to 49% as of Wednesday.
While Trump once called bitcoin a scam, he has shifted away from the decentralized currency and now refers to himself as the “head of crypto.” In recent months, Trump has been courting crypto lobbyists and establishing himself as a defender.
Cryptocurrencies fall after Harris-Trump debate
Vice President Kamala Harris’ strong performance in Tuesday night’s debate with former President Donald Trump appears to have garnered support from some voters, sending cryptocurrency stocks tumbling.
Bitcoin fell 2.6% after the debate, before shedding some of those losses. It is now trading at $56,746 as of 7:45 a.m. ET on Wednesday. Ethereum, the second-largest cryptocurrency by market capitalization, fell 2.5% and trades at $2,327; Dogecoin, the meme currency of choice of Trump supporter and Tesla CEO Elon Musk, fell 3%; Solana fell more than 2%.
The market reaction comes at a time when the second Trump administration seems less likely after the former president found himself playing the role of defense on issues such as abortion, often playing for his Democratic rival and looking confused. His odds of winning the election have dropped, from 52% as of Tuesday morning to 49% as of Wednesday.
63% of debate viewers registered to vote said Harris performed better than Trump on the debate stage. Although most said it would not affect how they vote in November.
While Trump once called bitcoin a scam, he has shifted away from the decentralized currency and now refers to himself as the “head of crypto.” In recent months, Trump has been courting crypto lobbyists and establishing himself as a defender.
Speaking to a crowd of about 3,000 people at the Bitcoin conference in Nashville earlier this year, Trump promised to fire SEC Chairman Gary Gensler on his first day in office over his opposition to cryptocurrencies. Trump also promised to create a strategic national reserve for Bitcoin, reiterated his position that the United States should emerge as the cryptocurrency capital and superpower of the world, and claimed that Bitcoin may one day exceed the market value of gold.
