Major cryptocurrencies exhibited mixed trading on Wednesday, leaning towards a negative trend following the release of U.S. inflation data that met expectations, failing to impact speculations of a Federal Reserve rate adjustment in June.

Bitcoin saw a modest 0.2% increase over the past 24 hours, reaching $72,107 by 10:46 am IST. Conversely, other prominent digital assets like Solana, Cardano, Dogecoin, Shiba Inu, Polkadot, and Chainlink experienced declines of up to 3%. In contrast, select top crypto tokens such as Avalanche, Toncoin, and NEAR Protocol recorded significant gains ranging from 11% to 18%.

During the same period, the global cryptocurrency market cap rose by 0.56% to approximately $2.73 trillion.

Crypto Tracker

45,174 (2.23%)

6,026,162 (1.74%)

336,184 (1.45%)

12,670 (1.05%)

83 (0.31%)

The Consumer Price Index (CPI) showed a 3.2% increase over the 12 months leading up to February, slightly surpassing the estimated 3.1%. Despite this uptick in inflation, market sentiments regarding a potential Federal Reserve rate cut in June remained unchanged, as indicated by the CME’s FedWatch Tool. Edul Patel, CEO of Mudrex, noted, “Bitcoin experienced a minor dip in response to elevated inflation levels in the U.S., with the CPI data exceeding expectations in February. Nevertheless, Bitcoin maintained levels above $72,000 with ongoing inflows into spot Bitcoin ETFs.”

The total trading volume in the crypto market over the last 24 hours amounted to \(158.88 billion, reflecting a 4.35% decrease. Within the DeFi sector, the volume stood at \)15.55 billion, constituting 9.79% of the total crypto market volume. Stablecoins contributed $146 billion to the total market volume, representing 91.9% of the 24-hour crypto market volume, according to CoinMarketCap data.

Bitcoin, holding the position as the largest cryptocurrency by market capitalization, saw its market cap surge to \(1.417 trillion in the past 24 hours, with a dominance of 51.95%. Despite a 5.7% decline in BTC volume to \)61 billion, the technical analysis suggests a bullish sentiment, with a keen focus on ETF inflows. Additionally, the CoinDCX Research Team highlighted Ethereum’s robust fundamentals and anticipated a breakthrough past the $4,100 price level.

Technical Analysis by Rajagopal Menon, Vice President at WazirX

BTC/USD’s hourly MACD signal exhibited bullish momentum in the bullish zone, supported by an RSI above the 50 level, indicating strength. Key support levels for Bitcoin are identified at \(71,300 and \)70,000, while resistance levels to monitor include \(72,000, \)72,850, and $73,000.

The 10-day Exponential Moving Average (EMA) signals a “Buy” at 68415, while the 200-day EMA also indicates a “Buy” at 42922. Similarly, the 10-day Simple Moving Average (SMA) suggests a “Buy” at 68674, with the 200-day SMA signaling a “Buy” at 39564.

The Relative Strength Index (14) stands at 78, indicating a “Neutral” stance. The Stochastic %K (14, 3, 3) at 93 suggests a “Sell” position, while the Average Directional Index (14) at 58 reflects a “Neutral” outlook.

(Disclaimer: The views expressed by experts are personal opinions and do not reflect those of The Economic Times)