US Banks, Crypto Market Rally As CPI Data Comes In At 6%

After liquidity injections by the U.S. Federal Reserve and big banks like JPMorgan, bank shares are rebounding on Tuesday. After the U.S. CPI data for February comes in as expected by the market at 6%, the crypto market has rebounded, causing a massive rally in Bitcoin and Ethereum prices.

Bitcoin price reaches above the $26,000 level, rising 5% in just a few minutes after the CPI data. The BTC price is up 18% in the last 24 hours. Ethereum price is trading at $1,737., up 10% in the last 24 hours and 3% in an hour. Bitcoin and Ethereum prices reached above crucial levels after the massive rally.

U.S. banking shares have also rebounded higher with First Republic Bank stock rising over 50% to $48.30 in pre-market hours, as per Yahoo Finance. Other banks’ shares have also rebounded higher as investors reacted to the latest US inflation data. PacWest Bancorp is trading at 55%, Western Alliance Bancorporation at 54%, and Silvergate Capital Corporation at 13% in premarket hours.

The Labor Department’s CPI report showed that monthly inflation rose by 0.4% in February, resulting in annual inflation slowing to 6%. However, Core CPI inflation exceeded expectations, underscoring a still challenging macro environment.

Bitcoin Price Breaks $26K After 9 Months

Bitcoin price breaks above the $26K level for the first time in 9 months, confirming a bullish recovery in the crypto market. The bulls have finally taken over bears completely as the Bitcoin price rises above the crucial 200-WMA.

Bitcoin price is currently trading near the $26K level, after hitting a high of $26,514. The trading volume has also jumped higher and Bitcoin dominance reaches a record of 44.62%, breaking the $500 billion market cap.

Meanwhile, Ethereum price is trading at $1,747, supported by a rise in trading volume. The 24-hour low and high are $1,600 and $1,773, respectively.

With the CPI cooling to 6%, the U.S. Dollar Index (DXY) fell below 103.5o. The continuous fall, especially to 103, will confirm a bullish momentum to $30,000, and other cryptocurrencies including Ethereum will follow suit.

The CME FedWatch Tool indicates an 18.1% probability of no rate hike and an 81.9% probability of a 25 bps rate hike by the Fed on March 22.

Also Read: Almost 1 Billion XRP Moved Amid Ripple CEO’s SVB Exposure Talks

Varinder is a Technical Writer and Editor, Technology Enthusiast, and Analytical Thinker. Fascinated by Disruptive Technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence, and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a substantial period and is currently covering all the latest updates and developments in the crypto industry.

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