Bitcoin, currently priced at $80,621.04, has shown resilience amidst inflation concerns, quickly reversing a dip following the release of the April Consumer Price Index (CPI). The CPI indicated a year-over-year increase of 3.8%, surpassing economists’ expectations, largely due to rising gasoline prices linked to the ongoing Iran war. After dropping to $79,879 during late U.S. trading hours on Tuesday, Bitcoin rebounded to $81,208 by the Asian morning on Wednesday, ultimately closing the session with a modest gain of 0.3% over 24 hours, trading within a range of $1,400.
Among other major cryptocurrencies, Binance Coin (BNB) recorded a 2.5% increase, reaching $677, while Dogecoin rose by 1.3% to $0.1114. In contrast, Ethereum (ETH) saw a decline of 0.3% to $2,300, making it the weakest performer over the week with a 3.2% drop. Solana experienced a slight decrease of 0.6%, settling at $95.52, and XRP was down 0.5%, trading at $1.45.
Traditional markets reacted more sharply to the CPI data, with the S&P 500 dipping by 0.2% and the Nasdaq 100 falling by 0.9%, particularly impacted by a sell-off in semiconductor stocks after a period of significant gains. The two-year Treasury yield remained just below 4%, while Japan’s 20-year bond yield rose to its highest level since 1997, signaling increasing inflationary pressures globally.
Despite the mixed performance, crypto market sentiment remains positive. According to CoinShares, there were substantial inflows into global crypto funds, totaling $858 million last week. Bitcoin products claimed $706 million of this, while Ether, Solana, and XRP saw inflows of $77 million, $48 million, and $40 million, respectively. Interestingly, Bitcoin experienced $14 million in outflows from short positions, marking the largest unwind of weak bearish bets since 2026. This trend suggests a shifting market sentiment that may lead to upward momentum rather than decline.
Analyst Alex Kuptsikevich from FxPro noted that overall market sentiment has stabilized just below the midpoint, with recent index readings hovering around 47 to 49, indicating a slight advantage for bearish positions. He pointed out that Bitcoin had “lost its upward momentum” as it approached its 200-day moving average, a key long-term indicator that dampens short-term price fluctuations. Although the downward trend is modest, it appears more like a temporary pause following a prior rally.
Furthermore, CoinShares highlighted that last week’s inflow surge coincided with regulatory advancements regarding stablecoin yield treatment linked to the CLARITY Act, which is scheduled for Senate Banking Committee review next week. This progress in regulation serves as one of the few positive developments in the market since the onset of the Iran war, reflected in inflow data rather than immediate price changes.
Currently, Bitcoin’s ability to hold above the $81,000 mark following the surprising CPI report and tight Treasury yield conditions signals that structural buyers remain active. The next significant test will be if this momentum can sustain through the upcoming Senate deliberations and forthcoming macroeconomic data releases.
