Bitcoin (BTC) price surpasses $84,000 as cooler inflation data boosts risk appetite

Bitcoin (BTC) price rose further on Wednesday as cooler inflation data boosted risk appetite.

Cryptocurrencies rebounded on Wednesday, extending gains as cooler-than-expected inflation data boosted risk appetite and saw video-sharing platform Rumble Inc. (NASDAQ:RUM) announce a $17 million Bitcoin purchase for its Treasury.

What Happened: Bitcoin surpassed the $84,000 mark in the early morning hours, but profit-taking quickly reversed the gains. The leading cryptocurrency progressively increased and stabilized in the $83,000 region.

Ethereum remained choppy in the $1,850-$1,950 zone as holders anticipated a breakout above $2,000. The second-largest cryptocurrency's market dominance fell further to 8.5%, while Bitcoin maintained a 61.2% share.

Long liquidations hit $150 million, while $119 million in downside bets were erased in the last 24 hours. About $500 million in shorts risked liquidation if Bitcoin rallied to $86,800.

Bitcoin's Open Interest rose 1.44% over the last 24 hours. Interestingly, the number of traders positioned short on the apex digital asset surpassed longs, according to the Long/Short Ratio.

The market remained in the "Fear" zone, according to the Crypto Fear and Greed Index, suggesting potential for further downsides.

Top Gainers (24 Hours)

The global cryptocurrency market capitalization stood at $2.71 trillion, following an increase of 0.68% in the last 24 hours.

Major stock averages recuperated on Wednesday. The S&P 500 rose 0.49% to close at 5,599.30. The tech-heavy Nasdaq Composite gained 1.22%, ending at 17,648.45. Conversely, the Dow Jones Industrial Average recorded the third straight losing day of the week, closing 0.20% lower at 41,350.93.

The recovery followed cooler-than-expected February's consumer price index data, reinforcing the Federal Reserve's path toward interest rate cuts.

While the likelihood of rate cuts appeared slim at the March and May meetings, traders have priced in a 68% chance of a 25 basis point rate drop in June, according to the CME FedWatch tool.

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Analyst Notes: Well-known on-chain analytics firm Santiment noted a sharp jump in Tether's USDT/USD on-chain activity, with transfers hitting a six-month high.

"When USDT & other stablecoin activity spikes during price drops, traders are preparing to buy. Added buy pressure aids in cryptocurrency prices recovering," Santiment added.

💸 Tether's on-chain activity has been rapidly rising, with over 143K wallets making transfers yesterday alone (a 6-month high).

When $USDT & other stablecoin activity spikes during price drops, traders are preparing to buy. Added buy pressure aids in crypto prices recovering. pic.twitter.com/siFOR7vSf7

— Santiment (@santimentlabs) March 15, 2024

Widely followed cryptocurrency analyst Ali Martinez suspected an inverse head-and-shoulders pattern on Bitcoin's chart, potentially triggering a bullish breakout toward $91,000.

An inverse head and shoulders indicates a potential reversal from a negative trend to an upward trend

If this is an inverse head-and-shoulders pattern, #Bitcoin $BTC could see a bullish breakout toward $91,000! pic.twitter.com/35m6sNUc47

— Ali Martinez (@ali_reza_m) March 14, 2024