On Tuesday, despite attempts by bears to push Bitcoin (BTC) lower, the cryptocurrency market showed surprising resilience. This was driven by strong demand from spot BTC ETFs, keeping demand high.
Earlier in the day, the release of a higher-than-expected Consumer Price Index (CPI) briefly caused a dip in asset prices. However, this was quickly brushed off by investors, resulting in a 1.12% increase for the S&P, 0.61% for the Dow, and 1.54% for the Nasdaq.
According to TradingView data, Bitcoin experienced some volatility following the CPI release, reaching a new high of $73,040 on Coinbase before dropping to a daily low of $68,615 in the afternoon.
Despite the dip, dip buyers quickly took advantage of the 6% price swing, pushing Bitcoin back above $70,830 at the time of writing, a decrease of 1.9% in the past 24 hours.
Traditionally, higher CPI readings and strong jobs market data have negatively impacted crypto prices. However, the current bull cycle is showing a new level of stability, thanks to the strength of Bitcoin and continuous inflows into spot BTC ETFs.
Experts suggest that this trend will continue, as even without a rate cut from the Fed, factors such as institutional demand will drive Bitcoin to new highs. This sentiment was reiterated by Aurelie Barthere, Principal Research Analyst at Nansen.ai, who believes the recent inflation reading will not put an end to the crypto bull market.
In fact, experts believe that persistent high inflation is making Bitcoin more attractive to investors, as it serves as a hedge against inflation. This is evident in the growing institutional participation in the asset class, with several new Bitcoin ETFs being approved and launched.
While altcoins saw a mixed day of trading, with some tokens recording losses, experts believe that the overall trajectory points towards a generational transition in investment strategies, with Bitcoin emerging as a viable asset class. The current bull run has also resulted in an increase in interest for crypto spending, up by more than 25%.
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