US inflation data has impacted the cryptocurrency market, particularly with altcoins responding more significantly than Bitcoin.
Cryptocurrency Reactions to Inflation
According to the U.S. Bureau of Labor Statistics (BLS), inflation accelerated in June, with the consumer price index (CPI) rising to 2.7%. Bitcoin reacted modestly to the CPI news—its price rose only 2% over the past 24 hours, approaching $119,300. Meanwhile, Ethereum jumped 7.9% to $3,238 and Solana rose 5.4% to $167.
Capital Flowing into Altcoins
BRN lead analyst Valentin Fournier noted that inflation data confirmed market optimism. Inflows into ETFs continue, and altcoins are catching up with Bitcoin. Capital began flowing into altcoins, as evidenced by inflows into Ethereum ETFs ($193 million) and investment products based on Solana ($3.3 million).
Indicators for Altcoin Season
Ethereum is rising despite Bitcoin's lackluster performance, with capital actively flowing into altcoins. The altcoin index—the performance of 75% of coins within the top 50 cryptocurrencies by market capitalization—reached its highest level since February, signaling a clear trend change.
The cryptocurrency market continues to react to economic changes, with altcoins demonstrating stronger results compared to Bitcoin. This creates new opportunities for investors amid rising interest in cryptocurrencies.
