The crypto market continues its explosive rally, increasing its valuation to $3.8 trillion. Trading volume has also surged, preceding the release of U.S. CPI data.
U.S. CPI Data: The Volatility Trigger?
The entire market is looking forward to the release of U.S. consumer price index data, scheduled for July 15. The forecast stands at 2.6%, up from the previous 2.4%. Higher-than-expected data could trigger a negative market reaction, introducing volatility across both crypto and equity markets.
Bullish Momentum Persists?
Despite potential volatility, many market metrics continue to indicate support for the ongoing bull trend. According to CoinGlass data, funding rates for BTC are at 0.0105%, and for ETH at 0.0107%, suggesting control over leverage. Bitcoin's breakout above the $106,500 level continues to gain strength.
Signs of a Pullback Still on Cards?
However, short-term caution is warranted. The Bitcoin to Exchange Stablecoin Ratio has increased from 5.5 to 5.95 in just one week, suggesting a decline in immediate buying power. This could pave the way for a short-term pullback.
While the macro bull trend remains intact, a short-term pullback within the next 48 hours is likely. This would be driven by weakening stablecoin liquidity and excessive altcoin leverage. Such dips are expected to be temporary, presenting buying opportunities.
