BTC Recovers Post-CPI Volatility as Altcoins Show Gains

The primary cryptocurrency experienced massive turbulence at the end of the previous business week when it dumped from $112,000 to under $104,000 in the span of just a day. However, it bounced off during the weekend and went on the offensive at the beginning of the new business week. The bulls initiated an impressive leg up on Tuesday that resulted in a $6,500 surge, pushing BTC from $107,500 to a multi-day peak of $114,000.

This dramatic move proved to be a fakeout, as Bitcoin quickly lost all gains and dipped even further below $106,500. The following few days were more positive but less eventful as the markets awaited the Friday release of the US CPI numbers. BTC had calmed at around $111,000 and surged immediately after the inflation for September turned out to be lower than expected.

However, its progress was quickly halted, and the bears drove it south by over two grand in the following hours to just under $110,000. Nevertheless, BTC has bounced off and now sits close to $112,000. Its market cap has risen to $2.230 trillion on CG, while its dominance over the alts remains strong at 58%.

While Bitcoin captured most of the attention with its CPI-driven volatility, several altcoins posted more impressive gains over the past days. Most larger-cap alts have failed to post any significant moves in the past 24 hours, with ETH and BNB slightly in the red, while SOL, ADA, DOGE, HYPE, LINK, and XLM have produced minor gains.

More volatility comes from the likes of XRP, CRO, BCH, and ZEC, all of which have increased by somewhere between 3.5% and 5.3%. CRO’s 5% daily jump and XRP’s notable gains highlight the selective strength in the altcoin market despite Bitcoin’s dominance. In contrast, TRX has dumped by over 5% and now sits inches below $0.30, showing the divergent performance across different digital assets.

The performance of JUP, ZEC, CRO, BCH, and XRP demonstrates that while Bitcoin remains the market leader, specific altcoins continue to attract investor interest and capital flows even during periods of macroeconomic sensitivity.

Despite the significant price swings in Bitcoin and select altcoins, the total crypto market cap has remained sideways since yesterday at around $3.850 trillion on CG. This stability in overall market valuation suggests that while individual assets experienced volatility, the broader cryptocurrency ecosystem maintained its footing.

The market’s reaction to the US CPI data underscores the ongoing sensitivity of cryptocurrency prices to traditional macroeconomic indicators. The immediate surge following the lower-than-expected inflation numbers, followed by a quick pullback and subsequent recovery, demonstrates the complex interplay between macroeconomic data and crypto market sentiment.

Bitcoin’s ability to recover all losses and maintain its 58% dominance indicates continued institutional and retail confidence in the flagship cryptocurrency, even as alternative digital assets like CRO and XRP show strength. The market’s resilience in the face of economic data releases suggests growing maturity in how cryptocurrency markets process and react to traditional financial indicators.