- Bitcoin’s rally has slowed down as the market awaits CPI data.
- After weeks of the downturn, Bitcoin has jumped back above $20,000.
- Investors remind cautious about the upcoming Ethereum merge.
Bitcoin’s rally has slowed a tad after a pushback above the crucial $20,000 mark. Analysts say the market is poised for the disclosure of CPI data (Consumer Price Index) ahead of the next Federal Open Market Committee (FOMC) meeting, which could influence policymakers’ decisions.
Despite September being a historically difficult month for the crypto market, the bitcoin price has broken out of its downward trend over the previous week, leaving many in the industry feeling optimistic. On Monday, the premiere cryptocurrency gained as much as 3.3%, briefly surpassing $22,000 before retracing its gains.
Other top cryptocurrencies, including ethereum, BNB, XRP, Solana, Cardano, and dogecoin, have also risen as Ethereum’s long-awaited upgrade is set to begin.
On the other hand, the Ethereum network’s native coin, Ether, has been getting a lot of attention as the Merge, the shift to a more energy-efficient blockchain, approaches. Numerous financial applications rely on the network; therefore, the crypto community is on high alert for any problems that may arise.
However, that doesn’t seem to have deterred institutional players like Sean Farrell, head of digital asset strategy at Fundstrat Global Advisors, who stated in a note, “We continue to be long Ether into the Merge, using dips as buying opportunities.”
He further highlighted the fact that despite three previous Ethereum upgrades, Ether did not suffer a “sell-the-news” price drop. As such, there are still investments flowing into Ether despite the overall crypto market losing some steam.
According to a separate note from Genesis Global Trading Inc., the betting pattern around Ether options is heavily skewed toward bullish calls, but the picture becomes more even around the Merge date, implying that investors are hedging in the run-up to the event.
The CPI is a measure of inflation. Specifically, consumer price index data is collected on the prices of products and services consumed by the general public. Market watchers believe that if US inflation is higher than projected, it could reinforce expectations for restrictive monetary settings, which would be bad for cryptocurrencies.
At press time, Bitcoin was trading slightly above $21,800, while Ether was standing at $1,734, down 1.4% over the past 24 hours.