Bitcoin ATH Drama Continues As Inflation Eases Out

The overall cryptocurrency market valuation has surged past $2.7 trillion. Bitcoin (BTC) remained steady for a few days before making a strong move not too long ago, surpassing $70,000 for the first time ever, only to face a sharp rejection shortly after.

Numerous alternative cryptocurrencies, notably Worldcoin and FLOKI, have experienced significant gains over a 24 hour period. Other cryptocurrencies such as The Graph (25%), AGIX (20%), AR (19%), and NEAR (19%) have also seen substantial gains. Meanwhile, BNB, DOT, ICP, TON, and SHIB have recorded minor increases over the last day. ETH briefly surpassed $4,000 yesterday but has since retreated to nearly $3,900.

Recent Crypto Activity

Various reports highlighted the recent impressive performance of Bitcoin, including two consecutive all-time highs this week. Initially, Bitcoin surged above $69,000 on Tuesday following substantial gains on Monday. However, the upward momentum was swiftly countered by bearish pressure, resulting in a rapid decline of almost ten thousand dollars and triggering billions in liquidations.

Bitcoin quickly recovered most of its losses and returned to $67,000 in the subsequent days. The second surge occurred yesterday, propelling BTC above $70,000 for the first time. Once again, the flagship cryptocurrency could not sustain its momentum and retraced by a few thousand dollars. At present, BTC is trading around $69,500, with a market cap nearing $1.350 trillion on CoinGecko. Its dominance over other cryptocurrencies stands at 49.2%.

Elsewhere, various meme coins have been dominant during this bull run. While SHIB and DOGE compete for dominance, FLOKI has seen significant gains, climbing over 110% in the past week and 40% in the last 24 hours. Consequently, it has approached the top 50 largest cryptocurrencies by market cap. Worldcoin is another notable performer among the top 100 altcoins. WLD has surged by 42% despite controversies surrounding the project.

Other Markets

In the United States, it is likely that inflation eased gradually last month, while retail sales showed signs of improvement. This demonstrates why the Federal Reserve is not in a hurry to reduce interest rates.

The core consumer price index, which excludes food and fuel to provide a clearer view of underlying inflation, is expected to have increased by 0.3% in February compared to the previous month, following a 0.4% rise at the beginning of the year. The Labor Department is scheduled to release its CPI report on Tuesday.

Lastly, despite the dollar experiencing its most significant selloff of the year, Wall Street remains cautious about fully embracing bearish bets on the currency. The Bloomberg Dollar Spot Index has fallen for six consecutive sessions, marking its longest losing streak in five months. This week, the index has declined by 1.1%, putting it on track for its largest weekly drop of the year.