Ethereum and other altcoins have rallied over 4% as the cryptocurrency market prepares for the Consumer Price Index (CPI) inflation data for July. This positive momentum comes ahead of the CPI release on August 15.
Bitcoin Nears $60,000
Bitcoin is approaching the $60,000 mark, but a technical "death cross" signal is causing concern. Despite this, Bitcoin and the broader cryptocurrency market have rebounded strongly.
Short-Cover Rally and Liquidations
In the past 24 hours, the market has seen a significant short-cover rally, with over $177 million in liquidations. This includes $91 million in short positions and $86 million in long positions, reflecting increased market activity.
Anticipation of CPI Data
The US CPI data, set for release on August 14, is expected to show a rise in inflation. Estimates suggest a 0.2% increase for July, compared to a 0.1% drop last month. This could influence the Federal Reserve's decision on rate cuts in September.
Impact of CPI Data on Market Sentiment
The CPI data will be crucial for market direction:
High Inflation: Higher-than-expected inflation could lead to a sell-off in Bitcoin and other assets.
Low Inflation: Lower-than-expected inflation might ease market fears and spark a rally.
Looking Ahead
Investors are watching closely for the CPI data and the Federal Reserve's potential rate cuts. The upcoming data will play a key role in shaping the future movements of Bitcoin, Ethereum, and the broader market.