Mumbai: Cryptocurrency markets remained resilient despite hotter US inflation data, with Ethereum emerging as the major gainer after rising around 7% to nearly $2,607. Bitcoin, meanwhile, recovered from an initial dip following the inflation report and continued to trade around the $78,000 level.
The move came after the latest US Consumer Price Index (CPI) data showed inflation rising 3.4% year-on-year in August, while prices increased 0.4% from the previous month. The annual figure was in line with expectations, helping risk assets recover after an initial bout of volatility.
The latest cryptocurrency rally highlights how digital assets are responding to expectations around US monetary policy, particularly ahead of the Federal Reserve’s next interest-rate decision.
Ethereum leads the crypto market higher
Ethereum was the standout performer during the latest market move.
According to the report, ETH climbed about 7% in 24 hours to around $2,607, while its monthly gain reached approximately 38%. Independent CoinMarketCap data also shows Ethereum strengthening against Bitcoin, with the ETH/BTC ratio rising from 0.03127 on September 6 to around 0.03277 on September 12.
The stronger performance suggests that investors have been showing increased appetite for Ethereum even as uncertainty over interest rates remains.
Ethereum’s recent gains have also been supported by continued accumulation from large holders. The FinanceFeeds report cited data from The Block indicating that Bitmine acquired 28,086 ETH during the previous week.
Large-scale buying can influence market sentiment because investors often track the activity of institutional and high-value holders for signs of longer-term demand.
Bitcoin recovers after inflation-driven dip
Bitcoin initially reacted negatively to the latest US inflation figures.
The cryptocurrency briefly fell by roughly $1,000 following the release of the data and was reported to have touched around $76,050 before recovering. It later moved back towards the $78,000 mark.
CoinMarketCap’s latest data shows Bitcoin at around ₹73.9 lakh per BTC, with the cryptocurrency broadly stable over the previous 24 hours.
The recovery indicates that investors did not interpret the latest inflation reading as an immediate reason to exit cryptocurrency markets.
Bitcoin’s performance remains particularly sensitive to expectations surrounding interest rates because higher borrowing costs can reduce appetite for riskier assets, while expectations of easier monetary policy can encourage investment in markets such as cryptocurrencies.
Inflation remains a key market trigger
The US inflation report was closely watched because of its potential impact on the Federal Reserve’s next policy decision.
August consumer prices increased 0.4% on a monthly basis and were 3.4% higher than a year earlier. The figures were broadly consistent with expectations, although underlying inflation remained a concern for investors.
Market expectations for a Federal Reserve rate move have therefore become an important driver of cryptocurrency volatility.
The FinanceFeeds report said traders were pricing in a high probability of a rate hike at the next Federal Reserve meeting. Such expectations can create pressure on cryptocurrencies because higher interest rates generally make traditional fixed-income assets more attractive and increase the cost of capital.
However, the latest price action shows that crypto investors were willing to buy the dip after the initial reaction to the inflation data.
Ethereum-Bitcoin gap attracts attention
The contrasting performance of Ethereum and Bitcoin is another important feature of the latest market movement.
While Bitcoin remained close to the $78,000 level, Ethereum posted a much stronger daily gain. CoinMarketCap data indicates that ETH has also strengthened significantly against Bitcoin over the past month.
A sustained improvement in the ETH/BTC ratio is often interpreted as a sign that investors are becoming more willing to take exposure to Ethereum relative to the market’s largest cryptocurrency.
The shift could also reflect expectations around Ethereum’s ecosystem, institutional demand and broader interest in alternative digital assets.
However, short-term price gains should not automatically be interpreted as evidence of a permanent change in investor preferences.
What could happen next?
Bitcoin’s ability to remain above the $76,000 area after the inflation-driven decline could be important for the market’s near-term direction.
The FinanceFeeds report cited a trading range between approximately $76,000 and $83,000 for Bitcoin. A move towards the upper end of that range would indicate stronger buying momentum, while a break below the lower end could increase selling pressure.
Ethereum, meanwhile, is being watched around the $2,600 level after its latest rally. The report suggested that a move towards $3,000 could be possible if the current momentum continues, although cryptocurrency prices remain highly volatile and such projections are not guaranteed.
Investors will therefore be watching upcoming US economic data and Federal Reserve signals closely.
Pepeto presale also highlighted in sponsored report
The FinanceFeeds article also highlighted Pepeto, a cryptocurrency presale that it said had crossed $10.9 million in funds raised.
The article promotes Pepeto’s exchange, staking and cross-chain features and makes projections about its potential future returns. However, FinanceFeeds explicitly labels the material as sponsored content and states that it does not independently verify the legitimacy, credibility or financial viability of the claims made in the post.
Investors should therefore distinguish promotional presale claims from independently verified cryptocurrency market data. Presales and smaller crypto tokens can carry substantially higher risks than established assets such as Bitcoin and Ethereum.
Crypto market remains sensitive to Fed policy
The latest market movement demonstrates the continuing influence of US economic policy on cryptocurrencies.
Ethereum’s 7% jump and Bitcoin’s recovery towards $78,000 show that investors remain willing to take risks even when inflation and interest-rate expectations create uncertainty. At the same time, the sharp intraday movement in Bitcoin following the CPI release highlights how quickly sentiment can change.
For Indian investors, cryptocurrency prices are also influenced by the rupee-dollar exchange rate, domestic tax rules and global liquidity conditions. As a result, dollar-denominated gains do not always translate into identical returns in rupee terms.
The coming Federal Reserve decision and further economic data will remain key catalysts for the market. For now, Ethereum has taken the lead in the latest rally, while Bitcoin continues to hold the closely watched $78,000 zone.