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Bitcoin investment sentiment recovers... US CPI announcement changed the trend.
Bitcoin investment sentiment rebounded strongly after the release of the US Consumer Price Index (CPI), with $931 million flowing into Bitcoin Exchange-Traded Products (ETPs).
According to CoinShares data cited by blockchain media on the 27th ( local time ), when the US CPI was announced lower than expected, the market highly evaluated the possibility of interest rate cuts by the Federal Reserve ( Fed ), and buying pressure for Bitcoin increased rapidly.
As optimism spread in the crypto fund market, Bitcoin ETPs showed a strong recovery compared to the previous week. “There was great uncertainty last week due to the absence of economic indicators, but after the CPI announcement, expectations for interest rate cuts grew, and the Bitcoin market turned bullish,” analyzed a research director. On a weekly basis, the Bitcoin price recorded a strong rebound, rising by 5.84% at one point.
On the other hand, altcoin ETPs continued their outflow for the fifth consecutive week. Ethereum ETPs recorded the largest decline with an outflow of $169 million, while Solana ETPs saw an inflow of $29.4 million, a decrease of 81%. However, Ripple ETPs showed a rebound with an inflow of $84.3 million.
The US CPI shock quickly restored Bitcoin investment sentiment, and expectations for Fed interest rate cuts are strongly supporting the market. While Bitcoin ETP flows have turned bullish, the altcoin market continues to show weakness, displaying contrasting trends.