• Bitcoin price rose 16% to highs of $26,553 on Coinbase.
• US inflation data showed CPI rose 6% in the past 12 months in February.
• On-chain data suggests BTC price could rally to $30,000 in the short term.
Bitcoin Price Hits New Highs
Bitcoin price hit highs of $26,553 on Coinbase, with 16% upside in 24 hours. The crypto market reacted positively to the latest Consumer Price Index (CPI) data by the US Department of Labor as Bitcoin broke above $26,000.
US Inflation Data
The US Department of Labor reported that CPI rose 0.4% in February and 6% over the last year to align with market expectations. Notable was that US inflation had increased at its slowest pace since September 2021 while core CPI which strikes off more volatile food and energy items increased by 5.5%.
On-Chain Data Analysis
On-chain data shared by market research platform IntoTheBlock shows Bitcoin faces minimal selling pressure to around $30,000 indicating a potential rally for BTC prices towards this level.
Stocks Open Higher
Stocks also opened higher on Tuesday with S&P 500 up 1.5%, turning attention to the Federal Reserve and its interest rates path which is seen as providing cover for Powell’s policy changes going forward.
Altcoins Rise too
Aggregate market data from CoinGecko showed that total crypto market cap surged by more than 14%, with major altcoins like Ethereum and BNB hitting highs of $1,750 and $315 respectively