Summary:
Bitcoin surged 3% to surpass $58,000, driven by the August CPI report.
CPI slowed to 2.5%, marking its lowest since February 2021, while core inflation rose to 3.2%.
Ethereum gained 1.3% to $2,360, while Sui token surged 16% after Grayscale's announcement.
Bitcoin ETFs faced outflows totaling $44 million, led by ARKB's $54 million withdrawal.
Experts express caution as Bitcoin's bullish momentum appears to be fading.
Bitcoin's Recent Climb
Bitcoin climbed 3% on Thursday morning, surpassing $58,000, driven by investor responses to the August Consumer Price Index (CPI) report. The headline CPI slowed to a 2.5% annual increase, slightly below the expected 2.6%, marking its lowest level since February 2021. However, core inflation, which excludes food and energy, rose 0.3% monthly, surpassing forecasts of 0.2% and maintaining an elevated year-over-year rate of 3.2%, well above the Federal Reserve’s 2% target.
Ethereum and Sui's Performance
Ethereum (ETH), the second-largest cryptocurrency by market cap, also saw modest gains with a 1.3% increase to $2,360, according to CoinGecko data. In contrast, Ethereum competitor Sui, a Layer 1 blockchain, saw its SUI token surge 16%, trading at $1.03, after Grayscale announced the launch of its Grayscale Sui Trust. Each share of the trust holds 14.95 SUI tokens, valued at 90 cents, sparking investor interest.
ETF Outflows
Bitcoin spot ETFs faced outflows, with investors withdrawing a net total of $44 million on September 11. Notably, ARKB led with $54 million in outflows, while Grayscale’s (GBTC) Bitcoin ETF reported an outflow of $4.5 million. Conversely, Fidelity's FBTC ETF showed an inflow of $12.5 million.
Expert Insights
Peter Chung, Head of Research at Presto Labs, commented on the robust August CPI data, suggesting it triggered a risk-on trade that pushed Bitcoin higher. He noted, "This shows the market is now in 'good news is good news' territory."
However, Illia Otychenko, Lead Analyst at CEX.IO, expressed caution regarding Bitcoin's near-term momentum, stating, "Bitcoin’s bullish momentum appears to be fading". He pointed to technical indicators like the Relative Strength Index (RSI) and moving averages, indicating a possible bearish divergence. Otychenko highlighted the potential for a death cross on the daily chart, signaling bear dominance, though he noted that a MACD crossover suggests bearish pressure might be short-lived.
Understanding Technical Indicators
RSI measures the speed and change of price movements, indicating potential overbought or oversold conditions, while moving averages smooth out price data to identify trends and potential support or resistance levels over specific time frames.
Edited by Stacy Elliott.
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