In an unexpected rebound, cryptocurrencies like Bitcoin, Solana, and even the lesser-known PEPE Coin are witnessing a surge in their valuations following the release of the U.S. Consumer Price Index (CPI) inflation data on September 13. The numbers have triggered a renewed sense of optimism among investors, even as the Fear and Greed Index lingers in the realm of fear, posting a score of 36 at the time of writing.
The recent CPI data the U.S. Federal Reserve released has galvanized the crypto market, traditionally seen as a hedge against inflation. After a weekend that saw Bitcoin struggle to maintain its momentum past the $26,000 mark, a sudden drop to just under $25,000 had many traders anxious. However, the bulls were simply waiting for the right moment. In a surprising turnaround, Bitcoin broke through its previous resistance, clocking in at just over $26,500 yesterday evening. The BTC/USD cryptocurrency pair was trading at $26,293.37.
Ethereum, another heavyweight in the crypto arena, also posted gains of nearly 2%, reaching a price of $1,620.58. Altcoins experienced a more mixed bag of fortunes. While Binance Coin (BNB) and Cardano (ADA) made modest gains, other altcoins like XRP and DOGE displayed a more restrained performance despite their generally volatile nature.
However, the story doesn’t end with Bitcoin and Ethereum. Lesser-known cryptos like PEPE Coin and Solana have been on the radar of investors looking to diversify their portfolios. Solana, in particular, has shown a significant 4.23% gain, rising to $18.80. Even in the meme coin segment, Dogecoin and Shiba Inu show modest upticks.
While the past 24 hours have been relatively kind to cryptocurrencies, the overall market cap still stands at $1.05 trillion, posting a 1.35% increase at the time of writing. Interestingly, trading volumes have seen an 11.73% decrease, suggesting that while investors are buying, the market is yet to return to its total volatility.
As crypto enthusiasts cautiously regain their confidence, the coming days would be crucial in determining whether this positive momentum is a sign of an impending rally or a temporary respite from the recent downturn. Either way, the recent performance indicates there’s more to the story when investing in digital assets than just Bitcoin and Ethereum.
