Bitcoin bounces back near $100,000, joining stocks in rallying on inflation data

Bitcoin bounces back near $100,000, joining stocks in rallying on inflation data

Bitcoin Surges to Near $100,000 as Inflation Slows and Stock Market Rebounds

Bitcoin has experienced a significant surge, climbing back to nearly $100,000 as recent inflation reports reveal a slowdown and the stock market rebounds. The leading cryptocurrency is currently trading at $99,442, marking a 3.5% increase on Wednesday.

Just two days ago, Bitcoin fell to $90,000, weighed down by an unexpected jobs report and concerns over higher-than-expected inflation data. However, the latest reports on wholesale and retail inflation came in softer than expected, sparking optimism that the Federal Reserve may cut interest rates later this year.

Bitcoin Reflects Mainstream Influence of Macroeconomic Trends

This rebound highlights how mainstream Bitcoin has become, with macroeconomic indicators now playing a significant role in its price movements. The crypto market, much like the stock market, is increasingly responding to economic data. According to CoinMarketCap, the global crypto market rose 3.41% on Wednesday, reaching a total market capitalization of $3.46 trillion.

Other Cryptos Follow Bitcoin’s Lead

Bitcoin’s surge was not an isolated event. Other major cryptocurrencies followed suit, with Ethereum (ETH), the second-largest cryptocurrency by market cap, rising 4% to hover around $3,300. XRP, Solana, Cardano, and Dogecoin also saw gains of 15%, 4.6%, 7%, and 5%, respectively.

Bitcoin ETFs See Outflows Despite Price Surge

Despite Bitcoin's price increase, the cryptocurrency sector is facing outflows from exchange-traded funds (ETFs). The spot Bitcoin ETFs experienced back-to-back outflows over the past four trading days, totaling $1.2 billion. Ether ETFs also saw a similar trend, with $266 million in net outflows during the same period, suggesting a hesitancy among investors.

The recent price movement reflects the growing intersection between cryptocurrency and traditional financial markets, indicating that Bitcoin is becoming increasingly influenced by broader economic trends.

Tags: Bitcoin, Crypto Market, Inflation, Stock Market, Bitcoin ETF, Ether, XRP