Bitcoin News Today: Altcoins Surge as U.S. Inflation Hits 2.7% Ethereum Jumps 7.9% Solana Rises 5.4%

U.S. inflation data for June revealed an acceleration, with the consumer price index (CPI) rising to 2.7%, surpassing expectations. This unexpected surge has had notable implications for the cryptocurrency market, particularly for altcoins. Leading altcoins such as Ethereum and Solana reacted more strongly to the inflation data compared to Bitcoin. Ethereum's price jumped 7.9% to $3,238, while Solana rose 5.4% to $167. In contrast, Bitcoin's price increased modestly by 2% over the past 24 hours, approaching $119,300.

According to BRN lead analyst Valentin Fournier, the inflation data confirmed market optimism, leading to increased inflows into exchange-traded funds (ETFs) and a growing interest in altcoins. Fournier noted that investors' risk appetite has increased, with capital flowing into altcoins as evidenced by inflows into Ethereum ETFs ($193 million) and investment products based on Solana ($3.3 million). Ethereum, the second-largest cryptocurrency, benefits not only from demand for ETFs but also from interest fueled by corporate players. Public company SharpLink Gaming, which owns 280,706 ETH, became the largest public holder of Ethereum, surpassing the Ethereum Foundation. Over the past week, the firm has acquired more than 50,000 ETH worth over $73 million. Additionally, Nasdaq-listed miner BitMine Immersion announced it had raised $67.3 million to buy Ethereum.

The Altseason Index, which measures the performance of 75% of coins within the top 50 cryptocurrencies by market capitalization, reached its highest level since February. This indicates a clear trend change, with altcoins outperforming Bitcoin over a 90-day period. The drop in Bitcoin's dominance from 66% to 64% further supports the notion that altcoins are gaining traction. This shift is significant as it marks a departure from the recent trend where Bitcoin has been the dominant force in the cryptocurrency market. The acceleration in U.S. inflation has also fueled uncertainty around Federal Reserve rate cuts, which could delay easing measures and put pressure on risk assets like Bitcoin. Analysts have suggested that if core inflation exceeds 3.2%, it could further delay Federal Reserve easing, lift the dollar, and put additional pressure on risk assets.

The impact of the June CPI report on the cryptocurrency market has been notable, with Bitcoin experiencing a significant drop in value. This has created an opportunity for altcoins to rally, as investors look for alternative assets that may offer better returns in the current economic climate. The upcoming U.S. CPI data will be closely watched by traders, as a hotter-than-expected reading could delay Fed rate cuts and push Bitcoin even lower. However, a cooler-than-expected reading could provide a boost to the cryptocurrency market, as it would increase the likelihood of Fed rate cuts and ease pressure on risk assets.

The on-chain data reveals that the next big price shift in the cryptocurrency market could be influenced by the performance of altcoins. As Bitcoin dominance continues to decline, altcoins are likely to gain more attention from investors. The current market conditions, characterized by rising inflation and uncertainty around Federal Reserve policy, create a favorable environment for altcoins to thrive. While Bitcoin may continue to lead the charge in the short term, the long-term prospects for altcoins look promising, as they offer diversification and potential for higher returns.