Resurgence: Crypto Assets Bounce Back In Dip Frenzy

Crypto are showing signs of a modest rebound in the markets following a recent correction influenced by the U.S. CPI data. Bitcoin has swiftly recouped losses from earlier in the week, surging by 3.5% in the past 24 hours. This latest surge has propelled Bitcoin’s price above the $70,000 resistance level, which it had dipped below earlier in the week.

Currently, crypto assets are riding high, with major assets seeing a turnaround in trading volumes and significant upticks in the decentralized finance (DeFi) ecosystem. Bitcoin’s gains for the week stand at 6.63%, although its monthly performance shows a slight 1% loss.

The asset is currently trading at $70,593, with a 12% increase in trading volumes. This positive trend follows the clamour of traders to “buy the dip.” Users on social media platforms alluded to price declines brought on by macroeconomic issues and advised purchasing the dip before the halving.

This year, Bitcoin surged to a price exceeding $72,000, driven by increased inflows into spot ETF products. Buoyed by optimistic forecasts, bullish traders eagerly seized opportunities to buy on dips in anticipation of the next upward movement. However, on April 10th, the CPI revealed a US inflation rate of 3.5%, casting doubt on the likelihood of an anticipated interest rate cut.

Crypto Rally: Bitcoin Hits $70K

However, President Biden, who initially hinted at rate cuts later in the year, mentioned that the cuts could be postponed in light of recent figures. While the initial response triggered a sell-off, traders are now eyeing potential positives ahead, including the upcoming Bitcoin halving.

As macroeconomic indicators maintain market confidence, traders and stakeholders diligently track historical trends in search of emerging sentiment indicators. These dynamics have also resulted in crypto assets trading in tandem with the stock market.

Data recorded on the blockchain also indicates increased investment in alternative cryptocurrencies, coinciding with Ethereum’s rise by 0.5% to reach a trading value of $3,540. BNB, Solana, and Dogecoin have also seen gains of 1.4%, 0.9%, and 3.67% respectively. Consequently, the overall market capitalization has surged by 2.93% to reach $2.54 trillion.

Related Reading | Bitcoin Halving Is Expected on April 20, 2024; 4 Reasons It Might Be Different

The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.

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