Bitcoin, Ether soar ahead of crucial CPI data release

The global digital assets market printed broad green indexes on Tuesday morning as Bitcoin (BTC) and Ethereum (ETH), gained over 2% and 4%, respectively. The surge comes ahead of the anticipated US economic data due later this week.

The cumulative crypto market cap recorded a recovery of more than 2% over the last day to stand at $2.09 trillion. Its 24-hour trading volume spiked by 36% to hit the $83 billion mark as market sentiments left the fear zone and returned to the neutral region.

Bitcoin, Ether gains momentum ahead of CPI release 

BTC price has managed to reach the higher price ranges despite declining below the $50,000 zone in the first week of August. It regained the $60,000 mark on the chart but looked unable to sustain above the line. 

The largest crypto by market cap surged by over 2% in the last 24 hours. Its 24-hour trading volume is up by 35% to stand at $35.9 billion. Bitcoin is trading at an average price of $59,170, as of press time.

As per Coinglass data, around $56 million worth of long and short positions set on Bitcoin price were liquidated in the last 24 hours. More than $29 million worth of liquidated bets (545) turned out to be short positions. These were the investors who expected more pain for BTC. However, the crypto rebounded from printing red indexes.

Ether price spiked by 4% in the last 24 hours helping it to breach the $2,600 mark ahead of the crucial data release. Its 24-hour trading volume is up by 38%. The new figure set at $21.5 billion suggests investors confidence returning in the market. ETH is trading at an average price of $2.656 as of press time.

Investors are focusing on Wednesday’s consumer price index (CPI) report. It is expected to show a 0.2% increase in July inflation from June while maintaining a 3% year-over-year rate. Any sudden change could influence the Federal Reserve’s interest rate decisions.

Ether/Bitcoin ratio drops by 37%

A report by 10x Research found that the Ether/Bitcoin ratio has dropped by 37% since the Ethereum Merge on September 15, 2022. This has marked the onset of a sharp downtrend as the ratio faced repeated resistance.

It mentioned that Ethereum developers are continuing to advance scaling solutions. This includes rollups aimed at achieving 100,000 transactions per second. However, other key enhancements, such as account abstraction to introduce smart contract wallets, reduce transaction costs, and improve user experience are also underway.

Data shows that Bitcoin and Ether prices have reacted differently over the last month. BTC price registered a surge of 2%, while, ETH price dropped by 16%, in the last 30 days.