Markets
Top Reasons Why BTC, ETH, SOL, and XRP Prices Are Rising
The recent recovery in the crypto market following volatile trading sessions in recent days has sparked discussions in the digital asset space. Notably, all major cryptocurrencies including Bitcoin, Ethereum, XRP, Solana, Shiba Inu and others rallied today, reflecting traders’ growing confidence in virtual currencies. However, amid this, some market participants are seeking clarity on the possible reasons behind the crypto market’s recent rally.
Why is the crypto market on the rise?
The crypto market recovery follows the rise in Bitcoin price since yesterday. However, the jump in prices follows the latest inflation data, which may have eased some investor concerns about potential action by the US central bank with its policy rate plans.
So let’s take a quick tour of the possible reasons that may have fueled the recent recovery in the crypto market.
CPI inflation data eases concerns
The recent USA Consumer Price Index (CPI) Data showed that inflation cooled in April, giving relief to crypto market investors. According to data from the Department of Labor, the US CPI rose 0.3% in April, below market expectations of 0.4%.
Simultaneously, the Main CPI on an annual basis it rose 3.6%, in line with Wall Street estimates and lower than the 3.8% observed in the previous month. This decreasing inflation data, although it remained above the Fed’s 2% target, reinforced investor confidence.
However, US PPI data earlier this week fueled concerns about a more aggressive stance by the US Federal Reserve. However, despite the warmer-than-expected weather US PPI dataThe latest data on inflation appears to have ignored the concerns of market participants, as evidenced by the recent rally in the crypto market.
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Entry of Bitcoin ETF reinforces crypto market optimism
The latest data from Farside Investors has helped regain confidence among crypto market traders. Recent data showed that the US Spot Bitcoin ETFs saw an inflow of US$303 million on Wednesday, May 15th.
Furthermore, the GBTC in grayscale noted an inflow of US$27 million, the first time since it recorded an inflow of US$3.9 million on May 6. It is worth noting that US Bitcoin ETFs saw an inflow of around $470 million in the first three days of the week, reflecting the dynamic recovery of the investment instrument. Furthermore, it also indicates that market participants are shifting their focus to the digital asset space.
How are Cryptos performing?
Recent inflation data coupled with US spot Bitcoin ETF inflow insights appear to have triggered the recent rally in the crypto market. Given data on cooling inflation, investors now anticipate a dovish stance from the US Fed with its policy rate plans.
Meanwhile, at the time of writing, the Bitcoin Price traded 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 US$3,004.38, with its trading volume rising 32% to US$15.48 billion.
Simultaneously, the Solana Price added almost 13% and traded at US$163.89, while the XRP Price jumped 3.26% to $0.5184. The main meme currency, Shiba Inu Price it was also up around 6% and changed hands at $0.00002534 at the time of writing.
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