Bitcoin tops $103,000 as softer US inflation boosts rate cut hopes

Bitcoin and other major cryptocurrencies traded higher on Wednesday after softer-than-expected U.S. inflation data and easing trade tensions boosted investor sentiment, reviving hopes of interest rate cuts by the Federal Reserve later this year.

As of 1:04 PM IST, Bitcoin was up 1% at $103,481, while Ethereum surged 7.3% to $2,650. The global crypto market capitalisation rose 2.8% to $3.38 trillion, with altcoins like XRP, Solana, Dogecoin, and Shiba Inu gaining between 3% and 9%.

The latest U.S. Consumer Price Index (CPI) showed inflation rose just 0.2% in April, below the 0.3% forecast, easing concerns over further interest rate hikes. This, along with improved trade relations between the U.S. and China, lifted risk appetite across crypto markets.

“Bitcoin is trading near $103,500 as markets absorb April's CPI report showing steady inflation. With the Fed now under less pressure to hike rates, BTC is gaining traction as a hedge and high-yield store of value,” said Sathvik Vishwanath, Co-Founder & CEO of Unocoin. “A bullish MACD crossover and RSI at 54 suggest rising momentum, though resistance at $105,000 remains a key barrier. Whales like Tether are accumulating, while some ETFs show profit-booking, signalling mixed institutional sentiment.”

He added that if Bitcoin breaks above $105,000, a run toward $110,000 is plausible. “A calm CPI keeps Bitcoin's uptrend cautiously intact, fueling crypto confidence this week.”

According to Vikram Subburaj, CEO of Giottus Crypto Platform, Bitcoin continues to consolidate above $103,000 as risk-on sentiment builds. He pointed out that neutral funding rates and steady trading volumes suggest the rally remains structurally strong.

“Ethereum and Dogecoin led the gains among key altcoins with 7–8% rallies, while Solana, Cardano, and Tron posted 2–6% increases,” Subburaj noted. “BTC dominance has dropped nearly 5% this week to 62.2%, hinting at a potential altcoin rotation in the near term.”

Subburaj believes a period of consolidation may precede Bitcoin’s next move toward the $110,000 mark.

The Crypto Fear and Greed Index touched 70, indicating growing optimism among traders. Market observers believe this could further support buying interest in Bitcoin and Ethereum, especially if macroeconomic data continues to remain supportive.

BTC, on a weekly time frame, made a ‘Bullish Engulfing’ candle around the key support of $73,500 and started moving up by forming a ‘Higher High and Higher Low’ pattern. The asset broke the downsloping trendline and the psychological level of $100,000. The price surged almost 39.75%, from $74,508 to $105,085. BTC has strong resistance at $110,000, whereas $100,000 and $90,000 will act as strong support levels for the asset.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)