Bitcoin bounces back near $100,000, joining stocks in rallying on inflation data
Bitcoin has surged back to almost $100,000 as key inflation reports show a slowdown, and the stock market is rebounding. The top cryptocurrency is trading at $99,442, representing an increase of 3.5% on Wednesday.
Two days back, Bitcoin dropped to $90,000, weighed down by an unexpected jobs report and anticipation of higher-than-expected inflation data. However, it came back on track as the wholesale inflation and retail inflation data report came softer than expected, indicating that the Fed may still cut interest rates this year.
The trend indicates how mainstream Bitcoin has become as macroeconomic indicators now influence its price, with the crypto market reflecting stock market movements. According to CoinMarketCap, the global crypto market was up on Wednesday by 3.41%, sitting at $3.46 trillion.
Besides Bitcoin, other major cryptocurrencies followed suit, with the second-largest crypto by market capitalization, Ether, up 4%, hovering around $3,300. XRP, Solana, Cardano, and Dogecoin surged by 15%, 4.6%, 7%, and 5%.
However, crypto ETFs are seeing outflows
The upward price movement of Bitcoin has come despite outflows in exchange-traded funds, or ETFs. The spot Bitcoin ETFs saw back-to-back outflows in the past four trading days, totaling $1.2 billion. The same trend was seen in Ether ETFs as investors hesitated to put their money. In the past four trading days, the net outflow was $266 million.
