Bitcoin demonstrated remarkable resilience in the face of persistently high US inflation figures, quickly recovering after an initial drop. Late Tuesday, following the announcement that the Consumer Price Index (CPI) rose 3.8% year-over-year, Bitcoin’s price slipped to $79,879. Yet, during the Asian morning session, this drop was swiftly reversed as Bitcoin surged back to $81,208. Over the past 24 hours, the leading cryptocurrency notched a 0.3% gain, trading within a volatile $1,400 range.
Major coin price movements and fund flows
Other major cryptocurrencies exhibited mixed performances amid market volatility. Binance Coin climbed 2.5%, reaching $677, while Dogecoin advanced 1.3% to $0.1114. Conversely, Ethereum weakened by 0.3% over the past day, dipping to $2,300, and posted a 3.2% weekly loss, making it the laggard among top assets. Solana fell 0.6% to $95.52, and XRP declined 0.5%, ending at $1.45.
CoinShares data showed that global crypto funds attracted $858 million in inflows last week. Of this, $706 million went into Bitcoin products, $77 million into Ethereum, $48 million into Solana, and $40 million into XRP. Notably, short positions against Bitcoin saw $14 million in outflows, marking the biggest weekly closure of bearish bets in 2026 to date. This shift signals weakening negative sentiment and growing optimism for upward momentum.
Traditional markets and regulatory moves
In contrast with crypto markets, US equities responded to the inflation data with sharper downturns. The S&P 500 index shed 0.2%, while the Nasdaq 100 fell 0.9%. Semiconductor stocks faced especially heavy selling pressure. US two-year Treasury yields, sensitive to rate expectations, hovered just below 4%. Meanwhile, Japan’s 20-year bond yield reached its highest level since 1997. Rising energy prices are amplifying global inflationary strains.
Asian stock markets partially recovered intra-day after initial selling pressure. A White House announcement that Nvidia CEO Jensen Huang would join President Donald Trump on an official trip to China boosted sentiment in semiconductor-linked futures trading.
Market sentiment and legislative developments
Analysts note that capital flows into crypto remain broadly positive. FxPro’s chief market analyst Alex Kuptsikevich observes that overall market sentiment has steadied between 47 and 49 in recent days, indicating that bearish forces retain a slight edge.
Kuptsikevich points out that Bitcoin’s upward momentum has faded as it approached its 200-day moving average, and that this longer-term price action is increasingly defining its trading range.
CoinShares also highlighted that the recent inflows into crypto funds coincided with progress on the CLARITY Act in the US Senate Banking Committee, which aims to provide consensus on stablecoin interest rates. The committee’s ongoing legislative activity stands out as a rare positive development since the Iran conflict, impacting fund flows more than prices themselves.
Data from CryptoAppsy show that despite high inflation and tightening US Treasury conditions, Bitcoin’s ability to hold above $81,000 signals robust buyer activity. However, this momentum is likely to face a major test next week during Senate discussions and the release of new macroeconomic data.
The market’s rapid response highlights the agility of investor sentiment amid shifting economic and regulatory environments. With significant capital continuing to flow into major cryptocurrencies, observers are watching closely for the next catalyst that will shape market direction.
Looking ahead, market participants remain alert to upcoming legislative developments in Washington, which could further influence fund flows and investor strategies. The intersection of policy and financial markets remains a key area to watch for both opportunities and risks in the months ahead.
