Crypto Edges Up on ETF Hopes, But Caution Prevails Ahead of Inflation Data
Bitcoin and the broader cryptocurrency market saw modest gains on Thursday, with altcoins leading the charge on renewed optimism over the approval of spot Ether exchange-traded funds (ETFs).
The positive sentiment in crypto was, however, tempered by a cautious mood in broader risk markets, with major tech stocks like Microsoft and Meta showing mixed performance ahead of key U.S. inflation data due later this week.
Bitcoin rose 0.18% in the past 24 hours to $61,550.5 by 01:05 ET (05:05 GMT). The token remains largely capped below key resistance levels as traders await a stronger catalyst.
World no. 2 crypto Ether was the standout performer among majors, jumping 1.27% to $3,480.12. The move was fueled by reports that asset management giant BlackRock had submitted an amended S-1 filing for its proposed spot Ether ETF, a step seen as progress towards an eventual launch.
The move also offered some support to crypto-linked stocks, with major Bitcoin holder MicroStrategy Inc (NASDAQ:MSTR) trading up 0.10%.
Broader Market Caution Lingers Before Inflation Data
While crypto-specific news provided a boost, gains were kept in check by broader economic jitters. Focus is squarely on upcoming U.S. Consumer Price Index (CPI) data, which will be a key factor in the Federal Reserve’s path for interest rates.
A hot inflation reading could dampen expectations for rate cuts this year, a scenario that typically weighs on speculative, risk-heavy assets like cryptocurrencies.
The cautious mood was also reflected in the tech sector, with giants like Microsoft (NASDAQ:MSFT) seeing muted gains of 0.13% and Meta Platforms Inc (NASDAQ:META) slipping 0.68% in premarket trade.
Crypto Price Today: Altcoins in the Green
Most major altcoins posted gains, riding on the coattails of Ether’s optimism.
XRP jumped 0.94%, while Solana and Cardano added 0.53% and 0.58% respectively. Polygon (MATIC) was also up 0.54%.
Among meme coins, Dogecoin rose 0.64%, while the politically-themed TRUMPo/USD token was an outlier, falling 0.25%.
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