Experts are desperate for bulls: Bitcoin is bleeding.
Bitcoin rose 3 percent on Thursday morning to surpass $5,000 as investors reacted to the August Consumer Price Index (CPI) report.
The CPI slowed to a 2.5 percent annual increase, slightly below the 2.6 percent expected, and its lowest level since February 2021. However, core inflation, which excludes food and energy, rose 0.3 percent on the month, beating estimates of 0.2 percent and well above the Federal Reserve’s 2 percent target.
Ethereum (ETH), the second-largest cryptocurrency by market cap, also rose 1.3 percent to $2,360, according to CoinGecko data. Ethereum rival Sui, a layer-1 blockchain, saw its $SUI token jump 16 percent today, reaching $1.03, after #Grayscale announced the launch of its Grayscale Sui Trust.
Meanwhile, Bitcoin spot ETFs have started seeing outflows again. Investors pulled $44 million from the funds on September 11, with SoSo Value data showing (ARKB) leading the way with $54 million in outflows.
Grayscale’s (#GBTC ) #Bitcoin ETF reported $4.5 million in outflows, while Fidelity’s (FBTC) ETF saw $12.5 million in inflows. Ethereum spot ETFs also saw $542,900 in net outflows, according to SoSoValue data. VanEck’s ETHV reported $1.7 million in outflows, partially offset by Fidelity’s $1.1 million in FETH inflows.
Peter Chung, Head of Research at Presto Labs, told Decrypt that strong August CPI data triggered risk, extending into Asian trading hours and pushing Bitcoin higher. However, CEX.IO Chief Analyst Illia Otychenko expressed caution about Bitcoin’s near-term momentum, saying: “Bitcoin’s bullish momentum appears to be waning.”