Bitcoin price sees $24K, Ethereum hits 2-month high as US inflation shrinks

Bitcoin (BTC), which regained $24,000, failed to reach new multi-month highs Aug. 10, as the United States’ inflation seemed to be slowing.

BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView

CPI reduces risk assets, much-needed slack

Cointelegraph Markets Pro and TradingView data confirmed hourly gains around $1,000 after the U.S. Consumer Price Index for July showed a slowdown.

Despite managing $24,179 on Bitstamp and BTC/USD gaining enough momentum to challenge levels the previous day,

However, traders felt relief as falling inflation indicated to the Federal Reserve that a less aggressive approach to interest rate increases was necessary. This should help to reduce the pressure on crypto and other risk assets.

CPI inflation was 8.5% year-on-year, 0.2% lower than expected, and month-on–month, it was the same as June.

Sir Powell, I know what you are doing.
Arthur Hayes (@CryptoHayes), August 10, 2022

“Markets have a clear run to regional Fed surveys in about a week. Raoul Pal, founder and CEO of Global Macro Investor, responded.

“Peak inflation leads to peak growth anxiety. I believe markets will respond positively to weak growth.

William Clemente, Blockware’s lead insights analyst, was cautiouser, describing the rally of risk assets as continuing “short-term” on the backs of the print.

Faith in the Fed cooling down its aggressive rate-hike cycle has been largely realized. The bets on a 75-basis point hike in September were drastically reduced to 50 basis points.

Holger Zschaepitz, a market commentator, stated that the Jul CPI was bullish for tech stocks.

As Ethereum beats the multi-month record, Dollar falls in step

Ether (ETH) was the one that celebrated the CPI event better than Bitcoin. It capitalized on the CPI mood to post its highest levels ever since June 7th.

Related: Bitcoin dominance falls to 6-month lows after metric declares new “alt season”

The ETH/USD pair gained 11.5% over the course of the day to $1,847. This fuels hopes that the crypto rally is more than just a fakeout.

“Some people forget that the market can pump, and it really shouldn’t be a trap,” trader Josh Rager tweeted. Josh Rager, a trader and commentator, tweeted that the market can pump, especially if it is fundamentally driven.

ETH/USD 1-day candle charts (Binance). Source: TradingView

The U.S. Dollar was the clear loser of the day. It extended its downtrend since mid-July in the CPI print.

According to Pierre, a popular trader, the U.S. dollar Index (DXY), lost 1.3% and is now targeting its 100 day moving average.

$DXY = D1 It’s hard to make it more clear/cleaner. I think simple TA also works on US Ponzi. I think D1 100 MA @103-104 is possible, but I don’t know.
— Bierre (@pierre_crypt0), August 10, 2022

NorthmanTrader founder Sven Henrich described DXY “getting crushed.”

com. You should do your research before making any investment or trading decision.

Close Bitnami banner