The cryptocurrency market is gaining momentum, with the prices of leading cryptocurrencies on the rise after weathering a bearish trend. Global crypto market capitalization has rebounded above $2.14 trillion, keeping bullish sentiment alive.
Bitcoin price has surged by nearly $2,000 since yesterday, following better-than-expected core PPI numbers in the United States. Early Wednesday, Bitcoin prices peaked above $61,000, marking a recovery of over $10,000 since it hit a six-month low of under $50,000 less than two weeks ago.
This downturn began when the U.S. economy released a disappointing jobs report, showing only 114,000 new jobs added in July. The concerning hiring figure rattled markets broadly, particularly the crypto market.
The rebound was fueled by an optimistic interpretation of a key economic report. The Producer Price Index (PPI) rose by 0.1% in July compared to the previous month, falling short of analysts' expectations. The PPI, which measures the prices charged by businesses, alleviated concerns about a stalling economy and, more significantly, revived optimism about upcoming interest rate cuts. Markets are now anticipating at least one 25-basis-point reduction in borrowing costs.
Most altcoins have also turned green on a daily scale. Ethereum has gained nearly 4% in value and is now comfortably above $2,700. BNB, SOL, XRP, DOGE, ADA, TRX, AVAX, and SHIB have also posted modest gains.
The total crypto market cap has increased by $60 billion overnight, reaching $2.235 trillion.
Bitcoin prices are becoming increasingly sensitive to economic data as the crypto space becomes more intertwined with global markets. With Bitcoin now boasting its own spot exchange-traded funds and Ether following suit shortly after, digital assets are being traded not just by niche, tech-savvy crypto enthusiasts, but by major investment firms and asset managers.
Market participants are eagerly awaiting the latest CPI inflation data, expected later today. If the upcoming CPI figures exceed expectations, which are set between 2.6% and 2.9%, a daily close above the critical resistance level of $62,200 to $62,500 could trigger a strong rally toward $68,000, the local high for the BTC price surge. However, to completely eliminate bearish possibilities and trigger a breakout beyond the upper resistance, Bitcoin (BTC) needs to reach levels above $70,000.
This article was written in cooperation with TradingView