Bitcoin, Ethereum, Dogecoin Trade Mixed After August CPI Inflation Comes In Hotter Than Anticipated: Analyst Predicts Beginning Of New Bull Market, Expects King Crypto To Reach $60K Levels

Major cryptocurrencies experienced a mixed performance on Wednesday evening, following the release of the U.S. government’s Consumer Price Index (CPI) report for August, which revealed slightly higher than anticipated data.

What Happened: The latest report revealed that inflation surged to 3.7% on a year-over-year basis, surpassing economist predictions of 3.6%. 

This increase was attributed to the rising oil prices, reaching a new high for 2023 and extending into September. However, when excluding food and energy expenses, the core Consumer Price Index (CPI) declined to 4.3% in August from 4.7% in July, aligning with expectations.

The ongoing decrease in the core inflation rate, reaching its lowest level since mid-2021, is likely to provide reassurance to the U.S. Federal Reserve.

The price of Bitcoin has maintained its stability above the $26,000 level on Wednesday even as FTX received approval from a bankruptcy court to sell its crypto assets. 

Gold, Silver Or Bitcoin: What Is The Best Hedge Against Inflation? Ask industry experts directly at Benzinga’s Future of Digital Assets event happening in NYC on Nov. 14, 2023. Be a part of the discussions where you won’t just be a passive spectator. Don’t let this chance slip away – secure early bird discounted tickets now!

Top Gainer (24 Hour)

Currently, the global crypto market capitalization stands at $1.03 trillion, a 0.44% increase in the last day.

The S&P 500 experienced a modest increase of 0.12%, closing at 4,467.44. Meanwhile, the Nasdaq Composite showed stronger performance, rising by 0.29% to finish at 13,813.59

See More: Best Cryptocurrency Scanners

Analyst Notes: Crypto analyst Michael Van de Poppe states that the current market decline is not significant and should not have much impact. It is worth noting that the Solana, which represents $1.2 billion in assets for FTX, is mostly staked and cannot be sold. So, what comes next? 

Van de Poppe said FTX has the ability to sell up to $200 million of assets on a weekly basis to address their clients’ liabilities. This could potentially create additional selling pressure in the market, but it is likely already accounted for in the current prices.

The important thing to note is that a massive sell-off of Solana is not expected, considering that it has already been sold off entirely in the past week. This could potentially result in a “sell the rumor, buy the news” scenario.

Meanwhile, Bitcoin is currently consolidating around $26.1K and is facing a potential breakout at resistance levels after surpassing $25K. "Breakout above $26.3K is vital for bullish continuation and support should hold at $25.3-25.6K."

Crypto analyst Miles recently shared a chart indicating that BTC has the potential to reach $60,000 from today’s level of $26,000. "Nothing to see here, just the beginnings of a new bull market."

Crypto Tony stated that he is currently not in a position and will wait for a potential dip down to $25,600 or a reclaim of $26,600 before making a long move. "Until then i am sitting out patiently."

Photo by Avi Rozen on Shutterstock

Read Next: Jim Cramer Advises Against Using Binance, Provokes Strong Reactions From Twitter Users