The cryptocurrency market staged a swift recovery over the weekend after a sudden sell-off rattled both Bitcoin and major altcoins.
The downturn, triggered by renewed macroeconomic uncertainty, caught some traders off guard after weeks of steady gains.
Much of the recent volatility has been tied to upcoming US inflation data, with investors now waiting for the Consumer Price Index (CPI) release next week before making significant moves. Analysts suggest that the CPI reading could be a major catalyst for the next decisive trend in crypto.
According to Min Jung of Presto Research, last week’s drop was largely fueled by disappointing US non-farm payroll figures. Combined with declines in US equities, the weaker-than-expected labor data prompted a wave of profit-taking across digital assets.
Yet the dip was short-lived. BTSE COO Jeff Mei noted that both institutional and retail players were quick to step in and buy at lower prices. “Every time the market pulls back, long-term investors treat it as an entry point. That’s why we’re not seeing prolonged downturns,” Mei told The Block. He added that growing activity from corporate treasuries and traditional finance partnerships could help sustain Bitcoin’s upward momentum in the months ahead.
Kronos Research CIO Vincent Liu described current sentiment as “cautiously optimistic,” pointing to strong whale accumulation and lingering expectations of a US interest rate cut as supportive factors. For now, market participants are watching the CPI print closely, with hopes that easing inflation will reinforce the case for more accommodative monetary policy.
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Source: https://coindoo.com/crypto-market-rebounds-after-sharp-sell-off-as-traders-eye-key-us-inflation-data/