TL;DR
- BTC’s Significant Surge: Bitcoin (BTC) approached $66,000 due to positive US macro data, with mixed opinions on whether its upward trend will continue.
- CPI Data Impact: April’s Consumer Price Index (CPI) slightly exceeded expectations, hinting at potential ease in financial conditions for cryptocurrencies, despite concerns over Bitcoin’s price stability.
- Altcoins’ Performance: While Bitcoin maintains a strong position, altcoins like Ethereum, Binance Coin, and Solana show significant growth, with the total crypto market cap rising above $2.5 trillion.
On May 16, Bitcoin (BTC) made a significant move, circling the $66,000 mark. This surge came in response to United States macro data, which sparked a rally in risk assets. While some remain skeptical of BTC’s price action, others believe it could continue its upward momentum into uncharted territory.
Fueling the Bull Run: CPI Data and Financial Conditions
The Consumer Price Index (CPI) for April narrowly beat expectations, leading to speculation about easier financial conditions for cryptocurrencies and other risk assets. As bulls attempted to cement 7.5% gains from the previous day, market observers raised concerns.
Rapidly increasing open interest was one of the signs that Bitcoin’s surge might be unsustainable. Popular trader Credible Crypto cautioned against such post-CPI conditions, emphasizing the need for stability in BTC’s price.
Bitcoin Short Liquidations and Optimistic Outlooks
Monitoring resource CoinGlass revealed that most potential short liquidations were clustered around the $67,000 level at the time of writing. However, veteran trader Peter Brandt remains optimistic about Bitcoin’s long-term prospects. He believes that the cryptocurrency will continue to climb, defying doubters and reaching new heights.
Altcoins and All-Time Highs
Founder and CEO of trading firm MNTrading, Michaël van de Poppe, predicts a “calm upwards period” for Bitcoin. Interestingly, he suggests that altcoins may potentially outperform BTC during this phase.
Meanwhile, trading firm QCP Capital has entertained the idea of a return to new all-time highs for Bitcoin, signaling continued bullish sentiment in the crypto market.
Although Bitcoin has experienced a slight dip, it continues to be traded above the $66,000 threshold. The cryptocurrency’s market capitalization has eclipsed the $1.3 trillion mark, and it commands nearly 52% of the total market share when compared to alternative cryptocurrencies.
In line with the usual trend, the majority of altcoins follow Bitcoin’s trajectory. Ethereum has once again breached the $3,000 mark, enjoying a 2.95% rise over the last 24 hours. Binance Coin has also ascended, now valued above $580, reflecting a nearly 2% increase. This upward trend is mirrored in the performance of XRP and DOGE as well.
A cluster of altcoins, including Shiba Inu, Avalanche, Polkadot, Bitcoin Cash, and Cardano, have witnessed growth ranging from 6% to 8%. Standing out from the crowd are Solana and the NEAR Protocol’s native token, with SOL surging by 12% to well over $160, and NEAR experiencing a 15% hike, now trading just above $8.1.
On the flip side, TON and PEPE represent the few larger-cap altcoins that have seen their values diminish in the day’s trading. Overall, the total market capitalization of cryptocurrencies has surged by approximately $150 billion from the previous day’s nadir, now standing tall above $2.5 trillion.
