Bitcoin Price Surpasses $58,000 Despite Diminishing Bullish Sentiment, Experts Note
Bitcoin saw a 3% increase on Thursday morning, surpassing $58,000, as investors reacted to the August Consumer Price Index (CPI) report. The headline CPI showed a 2.5% annual rise, slightly below the expected 2.6%, marking its lowest level since February 2021. However, core inflation, excluding food and energy, increased by 0.3% monthly, exceeding the forecast of 0.2% and maintaining a high year-over-year rate of 3.2%, well above the Federal Reserve’s 2% target.
Ethereum (ETH), the second-largest cryptocurrency by market cap, also experienced gains, albeit a more modest 1.3% increase to $2,360, according to CoinGecko data.
Sui, a Layer 1 blockchain and Ethereum competitor, witnessed a 16% surge in its SUI token value, trading at $1.03, following Grayscale’s announcement of the Grayscale Sui Trust launch. Each share of the trust holds 14.95 SUI tokens, valuing each token in the trust at 90 cents, sparking investor interest in the project, as reported by Grayscale.
Bitcoin spot ETFs observed outflows, with investors withdrawing a total of $44 million from the funds on September 11, led by ARKB with $54 million in outflows, according to data from SoSo Value. Grayscale’s Bitcoin ETF reported an outflow of $4.5 million, while Fidelity’s ETF showed an inflow of $12.5 million.
Ethereum spot ETFs also experienced net outflows of $542,900, with VanEck’s ETHV reporting a $1.7 million outflow, partially offset by Fidelity’s FETH inflow of $1.1 million, according to SoSo Value data.
Peter Chung, Head of Research at Presto Labs, mentioned that the robust August CPI data triggered a risk-on trade, pushing Bitcoin higher during Asian trading hours. He noted that the recent all-time high in Bitcoin’s hash rate, reaching 680 EH/s, suggests that the network’s security may be undervalued, potentially viewed as a buying opportunity by long-term Bitcoin bulls.
However, Illia Otychenko, Lead Analyst at CEX.IO, expressed caution about Bitcoin’s near-term momentum, highlighting technical indicators like the Relative Strength Index (RSI) and moving averages. Otychenko pointed out the potential formation of a death cross on the daily chart, indicating bear dominance, although a MACD crossover suggests that bearish pressure might be short-lived.
RSI measures the speed and change of price movements, indicating potential overbought or oversold conditions, while moving averages help identify trends and potential support or resistance levels over specific time frames.
