Recent U.S. inflation data have impacted the global crypto market. While overall market capitalization increased, trading volumes continued to decline.
Impact of Economic Data on the Crypto Market
The decline in U.S. inflation from 0.3% in January to 0.2% in February, and annually from 3.0% to 2.8%, contributed to the global crypto market cap rising by 2.14% to $2.7 trillion. However, intraday trading volumes fell by 15% to $100.52 billion. The Fear & Greed Index dropped to 21, indicating fear in the market.
Bitcoin Price Fluctuations
Bitcoin's price has been hovering above the $83k mark, with a 1.68% gain in 24 hours. It has a market cap of $1.65 trillion and holds a 61% market share. Trading volumes decreased by over 21%. There are rumors that the U.S. government might acquire 1 million Bitcoins as part of a long-term economic strategy.
Altcoin Performance
Ethereum experienced a slight decline, sinking 0.39% in the last 24 hours. XRP gained 2.90%, amid news of ETF filing by Franklin Templeton. Solana rose by 0.79%, reflecting cautious yet positive sentiment towards major altcoins.
The decrease in U.S. inflation has supported the crypto market, strengthening Bitcoin's position and boosting several altcoins. However, the dip in the Fear & Greed Index suggests persistent caution among investors.
