Crypto Surge: Bitcoin, Ethereum, XRP Rally on US Inflation Data

The US Consumer Price Index (CPI) release triggered a crypto market surge, with Bitcoin climbing above $120,000 after a moderate 2.7% annual inflation reading. Traders welcomed the lower-than-expected figure, fueling bullish momentum as technical indicators like the MACD signaled strength. Bitcoin now eyes the $122,335 weekly high, with potential to challenge its all-time peak of $123,218.

Ethereum mirrored the rally, soaring past $4,400 with a 6% daily gain, supported by $1 billion in spot ETF inflows. The altcoin’s surge positions it to test its 2021 high of $4,878, with traders speculating a breakout above $5,000. XRP also gained 2%, buoyed by legal clarity after Ripple and the SEC settled their long-standing dispute.

Morgan Stanley’s Ellen Zentner noted the inflation data could keep Fed rate cuts on the table, boosting risk assets. Core CPI’s 3.1% annual rise, though slightly above forecasts, remains manageable for markets. Analysts predict continued crypto volatility, with traders refining altcoin strategies to capitalize on the rally.

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