Bitcoin (BTC) and altcoins experienced a sharp decline following the US CPI data released yesterday, which exceeded expectations.
However, this situation was short-lived. While BTC and altcoins experienced a rapid recovery, Ethereum and BNB led this recovery.
While Ethereum (ETH) led the general recovery with a 6% increase and BNB a 13.6% increase in the last 24 hours, there were increases approaching 5% in important altcoins such as XRP, Solana and Dogecoin.
Presto Research analyst Min Jung said that CBOE’s amendment application to add staking to the 21Shares Ethereum ETF was effective behind this recovery:
“The Ethereum rally may be driven by CBOE’s application to the SEC to allow staking in the 21Shares Ethereum ETF.
One of the biggest drawbacks of ETH ETFs is that they cannot be staked, and if the CBOE’s application is approved, it could be a game changer for Ethereum.”
Jung also evaluated the surprising rise in BNB, stating that the listing of memecoins such as TST and CHEEMS on Binance and former CEO CZ's promotion of the BNB chain on social media were behind this rise.
Bitcoin and Altcoins May Be Preparing for a Rise!
BTC Markets analyst Rachael Lucas described the BNB price increase as a “technical bounce.”
“BNB found a price bottom on February 6 after falling to $500 due to liquidation-driven sell-offs, given BNB’s historical price action, traders likely viewed the $500 level as a significant accumulation zone, paving the way for further upside once broader market sentiment improved,” Lucas said.
Stating that the recovery in Bitcoin and altcoins after the CPI occurred without a significant upward catalyst, that the market had overcome its fears about the fee schedule and digested the latest inflation data, Lucas stated that the rapid recovery indicates stronger investor confidence.
Finally, Lucas stated that risky assets such as Bitcoin respond positively to stability in macroeconomic conditions, and said that if liquidity conditions remain supportive, Bitcoin and altcoins may be preparing for the next upward move.
*This is not investment advice.
