Bitcoin traders weather US CPI miss as ETH price tags 20-month high

    2024.01.11 | exchangesranking | 97onlookers

    Bitcoin (BTC) fought for range highs into the Jan. 11 Wall Street open as United States macro data returned inflation to the radar.

    BTC/USD 1-hour chart. Source: TradingView

    CPI shows resurgent Christmas inflation

    Data from Cointelegraph Markets Pro and TradingView tracked volatile pre-market BTC price moves focusing on $47,000.

    The December print of the Consumer Price Index (CPI) fell short of expectations for inflation slowing, instead revealing that prices were rising more quickly than predicted.

    Month-on-month CPI came in at 0.3% versus 0.2% expected, while year-on-year, the index rose 3.4% versus 3.2% expected, per data from the U.S. Bureau of Labor Statistics.

    “The all items index rose 3.4 percent for the 12 months ending December, a larger increase than the 3.1-percent increase for the 12 months ending November,” an accompanying press release confirmed.

    U.S. CPI chart. Source: Bureau of Labor Statistics

    While often apt to spark risk-asset volatility, this month’s CPI release merely added to existing tension on crypto markets. Jan. 10 saw the approval of the first U.S. spot Bitcoin exchange-traded fund (ETF), with Jan. 11 set to become the product’s first trading day.

    As Cointelegraph reported, pre-market data showed investor appetites firmly in place ahead of the open.

    BTC/USD passed $47,700 on Bitstamp on the day — still within its established range with $48,000 as its ceiling.

    “I’ve said this many times in the past months: this is not a chart you want to short,” popular trader Jelle summarized about the pair on X (formerly Twitter).

    “It will eventually accelerate higher.”

    Ethereum steals Bitcoin ETF limelight

    Taking a longer-timeframe view, Checkmate, lead on-chain analyst at Glassnode, dismissed the idea that the ETF go-ahead would be a “sell the news” event.

    Related: This Bitcoin ’bull cross’ is about to hit for the first time since 2016

    Squarely beating Bitcoin, meanwhile, was Ether (ETH), its 24-hour gains topping 10% thanks to what appeared to be a trader rotation post-ETF.

    “Many not seeing the pump they expected on BTC so now flocking to ETH hence the pump,” fellow trader Crypto Tony wrote in part of an X reaction.

    ETH/USD hit $2,666 on Bitstamp on the day — its highest levels since early May 2022. Solana’s SOL (SOL) and XRP (XRP) also put in double-digit returns.

    ETH/USD 1-week chart. Source: TradingView

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