The cryptocurrency market is preparing for the release of US PPI data today, with Bitcoin (BTC) and Ethereum (ETH) leading a strong short-term rally, indicating renewed investor confidence. Bitcoin’s price is approaching the $60,000 level, while Ethereum and other altcoins have seen even larger gains, with Ethereum rising over 4% in the last 24 hours.
All Eyes on Today’s PPI Data in the Cryptocurrency Market
The cryptocurrency market has been active recently, following significant liquidations. Data shows over $177 million in liquidations within 24 hours, including $91 million in short positions and $86 million in long positions. The liquidations in short positions are seen as a preemptive reaction to the expected 0.2% increase in PPI data for July, similar to the 0.2% increase observed in the previous month.
Inflation data could influence the Fed’s decision on whether to cut interest rates in September, so investors are closely monitoring the data. Historically, such macroeconomic data has impacted the cryptocurrency market, with altcoins showing high sensitivity to these figures.
The Rally May Not Be Sustainable…
Despite the positive momentum, technical indicators suggest that this rally may not be sustainable. Last weekend, a Death Cross signal appeared on Bitcoin’s price chart, indicating a potential downward trend. Some analysts warn that Bitcoin could fall below $50,000 again before starting its next bull run.
Ethereum’s current price of $2,661 reflects a 4.70% increase, with a market cap of $320 billion. However, concerns about the sustainability of this rally persist. Large Ethereum whale transfers related to ICO-era holdings have raised doubts about the stability of the altcoin king’s market, with some fearing that today’s gains might be a temporary “dead cat bounce.”
As the market awaits today’s PPI data and tomorrow’s CPI data, the coming days will be crucial in determining whether the rally in the cryptocurrency market marks the beginning of a sustained upward trend or a temporary response to short-term market dynamics.
