With positive data coming on CPI data for July, the market responded bullishly giving signs of an altcoin bull run. Data showed that consumer prices grew 8.50% in July year on year, below expectations of 8.70%. The Consumer Price Index (CPI) data led to a bullish environment in the financial markets. While Bitcoin saw an upsurge of around 4.30%, Ethereum price rose nearly 7.50% after the CPI data release.
Inflation Data A Turning Point For This Crypto Cycle?
The lesser than expected rise in inflation rate gave a boost to the crypto market, leading to speculation of a bull run. A section of the crypto community is also of the belief that the market had already hit the bottom. But many crypto investors anticipated a Bitcoin bull run if the inflation data turns out to be less than expected. Crypto Vince, a crypto enthusiast, predicted that a huge Bitcoin pump was in store if inflation declined in July. “If inflation numbers for July show a substantial decline this means a massive Bitcoin pump is likely to emerge.”
Crypto Santa, a trader, said Bitcoin was up for a massive rally as inflationary pressures reduced. “Bitcoin initially rejected from the $24,200 resistance, however BTC has seen a massive rally since inflation figures were released. As CPI figures indicated reducing inflationary pressures, on-risk assets are rallying, with Bitcoin likely to re-test $24,200.”
Altcoins Bull Run Set With A Huge Pump?
Although Bitcoin and Ethereum reacted positively to the reduction in inflation, it remains to be seen whether altcoins would sustain momentum. Many believe that the rally could spur a major altcoin bull run going forward. It could also lead to one of the biggest pumps in months, they predict. Crypto trader Ran Neuner said,
“With Inflation having peaked and dollar falling off a cliff, Bitcoin and altcoins are going to head for what I think might be the biggest pump in months.”
As of writing, Bitcoin (BTC) is trading at $23,926, up 3.65% in the last 24 hours, according to CoinMarketCap. Ethereum (ETH), on the other hand, stands at $1,829.65, up 8.33% in the last 24 hours.
Lark Davis, a crypto investor, thought the inflation numbers were still convincing for a positive impact on the crypto market. But the trending down of inflationary pressure was enough to pump the crypto prices.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
