Bitcoin traders lament US CPI as ETH price hits 20-month high.
Bitcoin (BTC) battled higher for a range at the January 11 Wall Street open as US macro data put inflation back on the radar.
The CPI shows rising Christmas inflation
Data from Cointelegraph Markets Pro and TradingView show volatile pre-market BTC price moves centered around $47,000.
The Consumer Price Index (CPI) published in December fell short of expectations for a slowdown in inflation, instead showing prices rising faster than expected.
Month-on-month CPI increased by 0.3% compared to the expected 0.2%, year-on-year, the index increased by 3.4% and 3.2%, according to data from the US Bureau of Labor Statistics.
“The index of all goods increased by 3.4 percent for the 12 months at the end of December, which is higher than the 3.1-percent increase for the 12 months at the end of November,” confirmed the accompanying press release.
While usually apt to trigger risk-asset volatility, this month's CPI release only added to the tension in crypto markets. January 10 saw the approval of the first US spot Bitcoin exchange-traded fund (ETF), with January 11 being the product's first trading day.
As Cointelegraph reported, pre-market data showed investor appetite was strong ahead of the open.
BTC/USD crossed $47,700 on Bitstamp for the day – still within the established range with $48,000 as the ceiling.
“I've said this many times over the past months: this is not a chart you want to short,” noted trader Jelle summed up the pair on X (formerly Twitter).
“Eventually it will increase to high speed.”
Ethereum Bitcoin ETF steals the limelight
Taking a long-term view, Checkmate, an on-chain analyst at Glassnode, dismissed the idea that the ETF's move ahead will be a “news selling” phenomenon.
Related: This Bitcoin ‘bull cross' is about to hit for the first time since 2016.
Watch the world live trading #Bitcoin ETF news. pic.twitter.com/k8gzzoXPHH
— _Checkmatey ⚡☢️️ (@_Checkmatey_) January 10, 2024
By contrast, beating Bitcoin was Ether (ETH), whose 24-hour gain was 10% higher, post-ETF trading turnover.
“Many didn't see the pump they expected on BTC, so now they're flocking to ETH, hence the pump,” co-trader CryptoTony wrote in part of X's response.
ETH/USD hit $2,666 on Bitstamp on the day – the highest level since early May 2022. Solana's SOL (SOL) and XRP (XRP) also posted double-digit returns.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
