Bitcoin (BTC) fought for range highs into the Jan. 11 Wall Street open as United States macro data returned inflation to the radar.
CPI shows resurgent Christmas inflation
Data from Cointelegraph Markets Pro and TradingView tracked volatile pre-market BTC price moves focusing on $47,000.
The December print of the Consumer Price Index (CPI) fell short of expectations for inflation slowing, instead revealing that prices were rising more quickly than predicted.
Month-on-month CPI came in at 0.3% versus 0.2% expected, while year-on-year, the index rose 3.4% versus 3.2% expected, per data from the U.S. Bureau of Labor Statistics.
“The all items index rose 3.4 percent for the 12 months ending December, a larger increase than the 3.1-percent increase for the 12 months ending November,” an accompanying press release confirmed.
While often apt to spark risk-asset volatility, this month’s CPI release merely added to existing tension on crypto markets. Jan. 10 saw the approval of the first U.S. spot Bitcoin exchange-traded fund (ETF), with Jan. 11 set to become the product’s first trading day.
As Cointelegraph reported, pre-market data showed investor appetites firmly in place ahead of the open.
BTC/USD passed $47,700 on Bitstamp on the day — still within its established range with $48,000 as its ceiling.
“I’ve said this many times in the past months: this is not a chart you want to short,” popular trader Jelle summarized about the pair on X (formerly Twitter).
“It will eventually accelerate higher.”
Ethereum steals Bitcoin ETF limelight
Taking a longer-timeframe view, Checkmate, lead on-chain analyst at Glassnode, dismissed the idea that the ETF go-ahead would be a “sell the news” event.
Related: This Bitcoin ’bull cross’ is about to hit for the first time since 2016
Live look at the world selling the #Bitcoin ETF news. pic.twitter.com/k8gzzoXPHH
— _Checkɱate ⚡☢️️ (@_Checkmatey_) January 10, 2024
Squarely beating Bitcoin, meanwhile, was Ether (ETH), its 24-hour gains topping 10% thanks to what appeared to be a trader rotation post-ETF.
“Many not seeing the pump they expected on BTC so now flocking to ETH hence the pump,” fellow trader Crypto Tony wrote in part of an X reaction.
ETH/USD hit $2,666 on Bitstamp on the day — its highest levels since early May 2022. Solana’s SOL (SOL) and XRP (XRP) also put in double-digit returns.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.