Major Cryptocurrencies Trade Higher on Easing Rate Concerns
Major cryptocurrencies saw an increase in trading on Thursday as concerns over interest rates eased. This came after US consumer price data showed that core inflation had moderated to 4.3% in August from 4.7% in July. However, overall retail inflation accelerated to 3.7% in August, the highest level in 14 months, due to rising gasoline prices.
Bitcoin and Ethereum Maintain Stability
Bitcoin (BTC) rose by 1.38% to reach $26,260, while Ethereum (ETH) remained above the $1,600 level. The global cryptocurrency market cap also saw an increase of 1.38% in the last 24 hours, reaching around $1.04 trillion.
The stability of Bitcoin above the critical $26,000 mark following the CPI report and Ethereum’s steady performance has instilled confidence among traders and analysts who consider these levels to be crucial, according to the CoinDCX Research Team.
Other Top Crypto Tokens Show Gains
In addition to Bitcoin and Ethereum, other top crypto tokens also experienced gains on Thursday. XRP, Solana, Polygon, Litecoin, and Shiba Inu all saw increases of up to 5%.
DeFi Volume and Stablecoin Market Cap
The total volume in decentralized finance (DeFi) currently stands at $1.96 billion, accounting for 6.7% of the total crypto market’s 24-hour volume. Meanwhile, stablecoins have reached a market cap of $27.36 billion, representing 93.38% of the total crypto market’s 24-hour volume.
Bitcoin Market Cap and Dominance
The market cap of Bitcoin, the largest cryptocurrency in the world, is approximately $511 billion. Bitcoin’s dominance currently stands at 49.05%, as reported by CoinMarketCap. The volume of BTC reached around $14.09 billion, experiencing an 11.4% decrease in the last 24 hours.
Ongoing Market Apprehension
Despite the positive short-term momentum displayed by Bitcoin following the CPI report and Franklin Templeton ETF application, the Bitcoin Fear and Greed Index indicates ongoing market apprehension. It has dropped by nine points compared to the previous month, according to ZebPay Trade Desk.
Expert Opinions
Shubham Hudda, Senior Manager at CoinSwitch Markets Desk, stated that BTC’s price action in the last 24 hours remained strong despite the high US inflation data. Bitcoin maximalists have long viewed BTC as an inflation hedge, and the key support level to watch is $24.5k.
Hot Take: Cryptocurrencies Show Resilience Amid Economic Data
Cryptocurrencies such as Bitcoin and Ethereum have demonstrated resilience in response to economic data, particularly the US inflation report. With Bitcoin maintaining its position above $26,000 and Ethereum remaining above $1,600, traders and analysts are gaining confidence in these levels as crucial thresholds for market stability and growth.
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