Bitcoin’s price saw a slight dip, on Wednesday, following the release of a key inflation report, which revealed that U.S. consumer prices rose less than anticipated over the past year. According to the Bureau of Labor Statistics (BLS), the Consumer Price Index (CPI) increased by 2.5%, annually, just below the expected 2.6%. The CPI, which tracks price changes across a wide range of goods and services, also recorded a 0.2% monthly rise in August, matching July’s growth. This follows a 0.1% decline in June, the first negative CPI reading since 2020. In response to the inflation data, Bitcoin briefly slipped to $56,500, marking a 1.5% drop over the past 24 hours. Other crypto assets, including Ethereum and Solana, also saw declines, with Ethereum falling to $2,300 and Solana to $130.
Bitcoin’s price climbed following Wall Street’s opening on Sept. 12, as fresh U.S. macroeconomic data ignited a risk-on sentiment throughout the broader crypto market. Starting at $57,335, Bitcoin surged 2.15% to reach an intra-day high of $58,560. This upward momentum was driven in part by the liquidation of short-positions, which further bolstered Bitcoin’s gains. Over the past 24 hours, the Bitcoin derivatives’ market saw liquidations totaling around $27.39 million, with $19.97 million coming from short-positions. When short-positions are liquidated, forced buying occurs, contributing to additional price increases. At the same time, Bitcoin’s open interest (OI) has risen from $28.30 billion on Sept. 8 to approximately $30.02 billion by Sept. 12. Additionally, Bitcoin’s funding rate has turned positive, currently, sitting at 0.0483% per week, indicating that long positions are now willing to pay shorts to maintain their positions. This marks a significant shift from the low of -0.1365% per week recorded on Aug. 17, showing a notable reversal in market sentiment.
Ethereum (ETH) is down 0.29%, today, as exchange-traded funds (ETFs) tied to ETH continue to underperform, facing yet another day of outflows. This underperformance may be linked to the historically weak third-quarter performance for ETH ETFs. Additionally, Ethereum’s exchange reserves have been increasing, reflecting the asset’s sluggish price growth. On Monday, Ethereum ETFs recorded $5.2 million in outflows, marking the fifth consecutive day of negative flows. The majority of these outflows came from Grayscale’s ETHER, which saw $22.6 million in redemptions, bringing its total asset loss since the launch of ETH ETFs to $2.69 billion. While other issuers reported no significant activity, Fidelity’s FETH and Grayscale’s Mini Ethereum Trust managed inflows of $7.6 million and $8 million, respectively. Technically, Ethereum’s Relative Strength Index (RSI) is holding above its midline at 53, suggesting mild bullish momentum. However, the Stochastic Oscillator has entered oversold territory, hinting at a potential short-term price correction. For further price growth, a rise in Ethereum futures’ open interest (OI) will be crucial to provide market support.
Following the September 11 Consumer Price Index (CPI) report, which indicated a slowdown in year-over-year inflation, Bitcoin reacted, positively, to the release of the Producer Price Index (PPI) data on September 12. The August PPI showed a 0.3% month-on-month rise, slightly exceeding expectations, while the annual increase came in lower than the forecast of 2.4%. Despite this, market participants shifted their focus to the unemployment figures, which surpassed predictions at 230,750 compared to the expected 227,000. For the past several weeks, markets had been pricing in a potential 50-basis point rate cut, at the upcoming FOMC meeting on September 18. However, this week’s macroeconomic data has, significantly, lowered the likelihood of such a cut, reducing the odds of a 0.5% reduction to under 15%, down from 40% just last week.
Technical Outlook:
BITCOIN:
Over the past few weeks, Bitcoin has been trading sideways in a broad range from $65,000 to $55,500 with low volumes. On a daily time frame basis, the asset is trading in a ‘Descending Channel’ pattern. Breakouts, on either side of the pattern, will further decide the trend for the asset. BTC has a strong support at $56,000 and $52,500, whereas $62,500 and $66,000 will act as a strong resistance.
ETH:
ETH, after surging almost 32% from the previous low of $2,111 to $2,820, witnessed a sharp correction and prices dropped to $2,400. The asset failed to hold and sustain the support of $2,400, and the prices further dropped to $2,150. ETH has a strong support at the key level of $2,150 and the lower shadows indicate buying around these levels. If it holds and sustains above the support then we may expect the bulls to resume the up move, whereas if the price breaks and closes below $2,150 then we may expect further downfall.
BNB:
BNB, after making the new all time high of $721, witnessed a sharp correction as it failed to give a weekly close above the previous all time high of $691. The prices corrected almost by 44% and dropped to $400. Post this move, the asset surged up to $600. However, the bulls failed to push the prices above the key resistance level of $600, and it witnessed another correction and dropped to $472. BNB has a strong resistance at $560 and $600, whereas $500 and $450 will act as strong support.
Weekly Snapshots:
| USD ($) | 05 Sep 24 | 12 Sep 24 | Previous Week | Current Week | |||
| Close | Close | % Change | High | Low | High | Low | |
| BTC | $56,160 | $58,127 | 3.50% | $59,899 | $55,673 | $58,534 | $52,599 |
| ETH | $2,368 | $2,362 | -0.25% | $2,563 | $2,313 | $2,407 | $2,151 |
| BNB | $502.07 | $544.30 | 8.41% | $542.63 | $496.44 | $547.79 | $473.17 |
| Crypto | 1w – % Vol. Change (Global) |
|---|---|
| Bitcoin (BTC) | 16.56% |
| Ethereum (ETH) | 17.71% |
| Binance Coin (BNB) | 0.49% |
| Resistance 2 | $66,000 | $2,850 | $163 | $600 |
|---|---|---|---|---|
| Resistance 1 | $62,500 | $2,450 | $138 | $560 |
| USD | BTC | ETH | SOL | BNB |
| Support 1 | $56,000 | $2,150 | $121 | $500 |
| Support 2 | $52,000 | $1,950 | $110 | $450 |
Market Updates:
⦁ On Sept. 12, Coinbase announced the launch of cbBTC—a wrapped Bitcoin product fully backed by physical Bitcoin held by the crypto exchange. The new product was launched on the Ethereum network, as well as Coinbase’s layer-2 scaling platform, called Base.
⦁ Three United States House Republicans probed Securities and Exchange Commission Chair Gary Gensler, claiming his agency could be hiring based on political affiliation, violating federal law.
⦁ Asset manager 21Shares is adding Anchorage Digital Bank and BitGo as custodians for its spot crypto exchange-traded funds (ETFs), according to a Sept. 12 announcement.
⦁ Grayscale, officially, announced on Sept. 12 the creation and public launch of Grayscale XRP Trust, which enables investors to gain exposure to XRP.
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