The cryptocurrency market experienced a sharp decline following the release of US inflation data. However, it quickly began to recover with Ethereum and BNB leading the way.
Impact of Inflation Data on Cryptocurrencies
Bitcoin and altcoins experienced a sharp decline after the release of US inflation data, which exceeded expectations. However, the market quickly began to recover.
Role of Ethereum and BNB in Recovery
Ethereum saw a 6% increase, and BNB rose by 13.6% over the last 24 hours. Significant increases were also noted in XRP, Solana, and Dogecoin. Presto Research analyst Min Jung noted that the Ethereum rally might be driven by CBOE's move to allow staking in the 21Shares Ethereum ETF.
Expectations for Bitcoin and Altcoins
BTC Markets analyst Rachael Lucas described the BNB price increase as a 'technical bounce.' The recovery in Bitcoin and altcoins occurred without a significant upward catalyst and indicates stronger investor confidence. If macroeconomic conditions remain stable, Bitcoin and altcoins may be preparing for the next upward move.
The short-term fluctuations in the cryptocurrency market highlight the importance of macroeconomic data. Investors should remain prepared for volatility, although current conditions may suggest a possible further recovery.
