Major digital assets climbed on Wednesday following the release of the latest Consumer Price Index (CPI) report, which indicated that U.S. inflation remains muted.
At the time of writing, Bitcoin (BTC) is trading at nearly $110,000, up 1% on the day. Ethereum (ETH) is up 3.3% to $2,834 while XRP is up 1.8% to $2.32. Meanwhile, Solana (SOL) surged by 6% to $166 following reports that the U.S. Securities and Exchange Commission (SEC) may soon approve a Solana exchange-traded fund (ETF).
The total cryptocurrency market capitalization remained unchanged in the past 24 hours at $3.59 trillion. Leveraged liquidations totaled $246 million, according to CoinGlass. ETH accounted for around $96 million, while BTC liquidations came in at around $37 million.
In the exchange-traded fund (ETF) sector, U.S. spot BTC ETFs attracted $431 million in inflows on Tuesday. Spot ETH ETFs also recorded around $125 million in inflows, according to SoSoValue data.
Inflation Report
Experts attribute today’s market gains to softer-than-expected inflation figures. The Bureau of Labor Statistics reported that CPI rose 2.4% on an annualized basis. The figure is also up compared to April’s 2.3%. Meanwhile, core inflation, which excludes food and energy, held steady at 2.8%.
“The latest U.S. CPI data has been published and came in slightly cooler than expected, giving the market some optimism that inflation might be easing,” said Dr. Kirill Kretov from CoinPanel. “This generally brightens the outlook for risk assets like Bitcoin and Ethereum.”
However, he cautioned that macroeconomic uncertainty remains persistent – especially given the market’s thin liquidity, where even smaller players with enough capital could easily sway prices against expectations.
“This market remains highly sentiment-driven and easy to manipulate,” Dr. Kretov added. “I expect volatility to continue, so it’s wise to stay cautious, particularly with leveraged or unhedged positions. Today’s optimism is encouraging, but the next swing could come at any moment.”
