Ethereum
Here’s why BTC, ETH, SOL and XRP prices are rising
The recent surge in the crypto market after trading volatility has sparked discussions in the digital asset space. Notably, all major cryptos like Bitcoin, Ethereum, XRP, Solana, Shiba Inu and others rallied today, reflecting investors’ growing confidence in virtual currencies. However, amidst this, some market participants are looking for potential reasons for the recent crypto market rally.
Why is the crypto market rising?
The crypto market rally follows the surge in Bitcoin price since yesterday. Meanwhile, the price rise follows the latest inflation data, which may have allayed some investor concerns about the US central bank’s potential move in its policy rate plans.
So let’s take a quick look at the potential reasons that may have fueled the recent crypto market rally.
CPI inflation data eases concerns
The recent United States Consumer Price Index (CPI) data showed that inflation cooled in April, providing relief to investors in the crypto market. According to Labor Department data, the U.S. CPI rose 0.3% in April, less than market expectations of 0.4%.
Simultaneously, the Basic CPI on an annual basis, jumped 3.6%, in line with Wall Street estimates and lower than the 3.8% seen the previous month. This falling inflation data, although remaining above the Fed’s 2% target range, boosted investor confidence.
At the same time, US PPI data from earlier this week fueled concerns about a more hawkish stance from the US Federal Reserve. However, despite a warmer temperature than expected PPI data in the United Statesthe latest inflation data appears to have ignored the concerns of market participants, as evidenced by the recent crypto market rally.
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Bitcoin ETF Influx Boosts Crypto Market Optimism
The latest data from Farside Investors has helped regain the confidence of traders in the crypto market. Recent data has shown that the US Spot Bitcoin ETF noted an influx of $303 million on Wednesday, May 15.
Furthermore, the GBTC in grayscale noted an inflow of $27 million, the first time since it recorded an inflow of $3.9 million on May 6. It is worth noting that US Bitcoin ETFs noted an inflow of around $470 million in the first three days of the week, reflecting the recovery. dynamics of the investment instrument. Furthermore, this also indicates that market players are moving towards the digital asset space.
How do cryptos behave?
Recent inflation data, along with news of US Spot Bitcoin ETF inflows appear to have sparked the recent crypto market rally. Given the slowdown in inflation data, investors are now expecting a dovish stance from the US Fed regarding its policy rate plans.
Meanwhile, at the time of writing, the Bitcoin Price was trading at $66,277.59, up about 6%, after hitting a 24-hour high of $66,677.89. On the other hand, the Ethereum Price rose 3.03% to $3,004.38, with trading volume up 32% to $15.48 billion.
Simultaneously, the Solana Price added almost 13% and traded at $163.89, while the XRP Price jumped 3.26% to $0.5184. The main coin, Shiba Inu Price also jumped around 6% and traded hands at $0.00002534 at press time.
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