The recent surge in the crypto market after volatile trading has sparked discussions in the digital asset space. Notably, all the major cryptos like Bitcoin, Ethereum, XRP, Solana, Shiba Inu, and others, have rallied today, reflecting the growing confidence of investors towards virtual currencies. However, amid this, some market participants are looking for the potential reasons behind the recent crypto market rally.
Why Is Crypto Market Rising?
The crypto market rally follows the surge in Bitcoin price since yesterday. Meanwhile, the jump in the prices follows the latest inflation data, which may have eased some concerns of the investors over the U.S. central bank’s potential move with their policy rate plans.
So, let’s take a quick tour of the potential reasons that may have fueled the recent rally in the crypto market.
CPI Inflation Data Eases Concerns
The recent U.S. Consumer Price Index (CPI) data showed that the inflation cooled in April, giving relief to the crypto market investors. According to the Labor Department’s data, the U.S. CPI rose 0.3% in April, lower than the market expectations of 0.4%.
Simultaneously, the Core CPI on a year-over-year basis surged 3.6%, in line with the Wall Street estimates and lower than the 3.8% noted in the prior month. This declining inflation data, although stayed above the Fed’s 2% target range, bolstered the investors’ confidence.
Meanwhile, the U.S. PPI data earlier this week has fuelled concerns over a more hawkish stance by the U.S. Federal Reserve. However, despite the hotter-than-anticipated U.S. PPI data, the latest inflation data seems to have shrugged off the concerns of the market participants, as evidenced by the recent rally in the crypto market.
Also Read: BONK Price Jumps 7% Amid Major Listing Announcement
Bitcoin ETF Inflow Bolsters Crypto Market Optimism
The latest data from the Farside Investors has helped regain the confidence of the crypto market traders. The recent data showed that the U.S. Spot Bitcoin ETFs noted an inflow of $303 million on Wednesday, May 15.
In addition, the Grayscale GBTC has noted an inflow of $27 million, the first time since noting an inflow of $3.9 million on May 6. It’s worth noting that the U.S. Bitcoin ETFs have noted an inflow of around $470 million in the first three days of the week, reflecting the regaining momentum of the investment instrument. Besides, it also indicates that the market participants are shifting their focus towards the digital asset space.
How’s The Cryptos Are Performing?
The recent inflation data, along with the U.S. Spot Bitcoin ETF inflow insights seems to have triggered the recent rally in the crypto market. Given the cooling inflation data, the investors now anticipates a dovish stance by the U.S. Fed with their policy rate plans.
Meanwhile, as of writing, the Bitcoin price traded at $66,277.59, up about 6%, after hitting a 24-hour high of $66,677.89. On the other hand, the Ethereum price rose 3.03% to $3,004.38, with its trading volume rising 32% to $15.48 billion.
Simultaneously, the Solana price added nearly 13% and traded at $163.89, while the XRP price jumped 3.26% to $0.5184. The leading meme coin, Shiba Inu price also surged about 6% and exchanged hands at $0.00002534 during writing.
Also Read: CME To Debut Bitcoin Trading Amid Growing Wall Street Interest
The post Crypto Market Up Today: Here’s Why BTC, ETH, SOL, XRP Price Is Rising appeared first on CoinGape.
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