Major cryptocurrencies experienced a surge on Tuesday evening, in the backdrop of a hotter-than-anticipated U.S. inflation reading that dampened expectations for interest-rate cuts.
| Cryptocurrency | Gains +/- | Price (Recorded 9:30 p.m. EST) |
| Bitcoin (CRYPTO: BTC) | +1.05% | $49,492 |
| Ethereum (CRYPTO: ETH) | +1.53% | $2,623 |
| Dogecoin (CRYPTO: DOGE) | +1.97% | $0.082 |
What Happened: The largest cryptocurrency by market capitalization, Bitcoin, experienced a decline of about 1% to $49,500 from its earlier position slightly above $50,000 earlier in the day.
In January, the consumer price index (CPI) increased by 0.3% from December, while on an annual basis, it rose by 3.1%. According to economists surveyed by Dow Jones, the anticipated CPI rise was 0.2% month over month and 2.9% from the previous year.
Core prices, excluding the volatile food and energy components, experienced a 0.4% monthly increase and a 3.9% rise from the previous year. The expected core CPI surge for January was 0.3%, with a 3.7% increase from the previous year.
Top Gainer (24 Hour)
| Cryptocurrency | Gains +/- | Price (Recorded 9:30 p.m. EDT) |
| Pyth (CRYPTO: BEAM) | +9.80% | $0.62 |
| Stacks (CRYPTO: ORDI) | +9.03% | $2.16 |
| Blur (CRYPTO: SEI) | +6.98% | $0.68 |
The global cryptocurrency market cap now stands at $1.87 trillion, showing a 3.66% increase in the past 24 hours.
Stocks experienced a decline on Tuesday as hotter-than-expected inflation data for January led to a spike in Treasury yields.
The Dow Jones Industrial Average closed at 38,272.75, marking a drop of 524.63 points, or 1.35%. Similarly, the S&P 500 slid by 1.37% to conclude at 4,953.17, while the Nasdaq Composite fell by 1.8% to settle at 15,655.60.
Furthermore, the 2-year Treasury yield surged above 4.66%, and the 10-year yield exceeded 4.32% following the release of the CPI data.
See More: Best Cryptocurrency Scanners
Analyst Notes: Cryptocurrency analyst Michael Van de Poppe has observed that #Bitcoin is undergoing a slight correction following the higher-than-projected CPI.
"Inflow is great, but it’s not a guarantee that it will go up endlessly. As long as #Bitcoin stays above $46K, trend remains up. Good sidenote: ETH/BTC bouncing upwards."
Van de Poppe suggests that Bitcoin and the digital asset market may be on the verge of a “crypto dot-com bubble.” The analyst predicts that widespread adoption of Bitcoin could trigger a substantial rally, potentially propelling the crypto king to well above half a million dollars.
"It could be that we're going to peak at $250,000 or $600,000…"
#Bitcoin correcting slightly after CPI came out (higher than projected).Inflow is great, but it's not a guarantee that it will go up endlessly.As long as #Bitcoin stays above $46K, trend remains up.Good sidenote: ETH/BTC bouncing upwards. pic.twitter.com/gK3j54iGPi
— Michaël van de Poppe (@CryptoMichNL) February 13, 2024
Cryptocurrency analyst Ali Martinez has pointed out that Bitcoin seems to be shaping an ascending triangle on the lower time frames. "This technical formation suggests BTC is poised for a 1.60% in the short-term. Watch out for the $50,200 resistance and the $50,000 support!"
#Bitcoin appears to form an ascending triangle on the lower time frames. This technical formation suggests $BTC is poised for a 1.60% in the short-term. Watch out for the $50,200 resistance and the $50,000 support!If you're planning to join me in this trade, go to @coinexcom,… pic.twitter.com/Jtb8Eedbtq
— Ali (@ali_charts) February 13, 2024
Photo by Fernando Cortes on Shutterstock
Read Next: Jim Cramer Advises Against Using Binance, Provokes Strong Reactions From Twitter Users
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Profit with More New & Research. Gain access to a streaming platform with all the information you need to invest better today. Click here to start your 14 Day Trial of Benzinga Professional
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
