• Bitcoin price hit highs of $26,553 on Coinbase, with 16% upside in 24 hours.
• US inflation data showed CPI rose 6% in the past 12 months in February.
• On-chain data suggests BTC price could rally to $30,000 in the short term.
Bitcoin Price Hits 26K
Bitcoin price hit highs of $26,553 on Coinbase, with 16% upside in 24 hours. This was a result of the crypto market reacting positively to the latest Consumer Price Index (CPI) data by the US Department of Labor. The total crypto market cap surged by more than 14%, and major altcoins like Ethereum and BNB hit highs of $1,750 and $315 respectively.
US Inflation Data
The US Department of Labor reported that CPI rose 0.4% in February and 6% over the last year – aligning with market expectations. The core CPI, which excludes food and energy items, increased by 5.5%. Stocks opened higher on Tuesday as investors turned attention to the Federal Reserve and its interest rates path.
On-Chain Data Suggests Rally
On-chain data shared by market research platform IntoTheBlock shows Bitcoin faces minimal selling pressure to around $30,000 which could lead to a potential rally for BTC price from its current price point at around $26k.
Silicon Valley Bank Collapse
Yesterday’s bullish sentiment was buoyed by the US government’s actions in the wake of Silicon Valley Bank’s collapse which led to a surge from lows of $20k up to breaking above $24k for Bitcoin price.
Fed Interest Rates Path
Market analyst Carl Quantanilla points out that this scenario “isn’t the best-case scenario” but there are enough dovish pieces that can give Federal Reserve Chair Jerome Powell cover to dramatically shift policy measures when it comes to interest rates paths.