Crypto Market Nervous: Crucial CPI Data Approaches, Ethereum Upgrade on the Horizon

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The global cryptocurrency market cap experienced a significant surge of 4.1 percent in the last 24 hours, reaching an impressive $2.83 trillion during the early London session on Tuesday.

Bitcoin, the leading cryptocurrency, made history by closing above $72,000 on Monday, indicating a strong bullish trend. This milestone has generated excitement among investors and enthusiasts alike.

The broader altcoin market, including Ethereum (ETH), Binance Coin (BNB), Solana (SOL), and Ripple-backed XRP, is gradually recovering from the bear market crash of 2022.

The increased adoption of cryptocurrencies by institutional investors, particularly from Wall Street, has created a noticeable correlation between the cryptocurrency market and traditional stocks. This correlation has led to heightened volatility, especially in response to impactful US news regarding inflation and interest rates.

The US Federal Reserve commissioners, after slowing interest rate hikes, are now hinting at inevitable rate cuts later this year. Despite concerns, the low US unemployment rate suggests a robust market, influencing the positive trajectory of the cryptocurrency market.

However, mixed signals persist in the US economy. The US Consumer Price Index (CPI) indicates unchecked inflation, causing JPMorgan Chase CEO Jamie Dimon to advise caution against hasty interest rate cuts, considering the potential for a recession in the United States.

Today, the US Bureau of Labor Statistics will release crucial CPI data, expecting a 0.1 basis point increase in the monthly change and a stagnant 3.1 percent for the year. This data is likely to impact the cryptocurrency market, adding a layer of volatility in the coming weeks.

Looking ahead, the cryptocurrency market is expected to experience increased volatility due to high-impact news. Ethereum’s eagerly awaited Dencun upgrade is scheduled for tomorrow, and the fourth Bitcoin halving, less than 40 days away, historically triggers a macro crypto bull run.

Despite the uncertainties, long-term crypto believers, led by MicroStrategy and BlackRock, continue to accumulate more coins, displaying unwavering confidence in the cryptocurrency markets and anticipating further gains.

Did You Know?
MicroStrategy has recently fueled its Bitcoin treasury with $800 million in convertible notes.

Crypto on the Cusp: Bull Run or Bubble? Share your thoughts.

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