Bitcoin (BTC) soared more than 7.5% against the US on Wednesday, making for the strongest single-day session for the world’s largest cryptocurrency in nearly two months.
The rally brought the BTC/USD pair to its strongest point in three weeks and the bulls have managed to hold onto these gains in early Thursday trades.
Bitcoin’s solid performance follows a softer-than-expected consumer inflation read for April which “lit a fire under equities once again”, said IG analysts.
Bret Kenwell, analyst at eToro, equated the consumer inflation print to a “Goldilocks report” for equities, with the optimist evidently filtering through to the cryptocurrency markets.
“The not-too-hot report should boost investor confidence that we could see more than one rate cut from the Fed this year,” said Kenwell.
At the time of writing, bitcoin was swapping for $66,140, or around 8.2% higher week on week.
Bitcoin is currently 57% higher year to date – Tradingview.com
Ethereum, the second-largest cryptocurrency, has underperformed against bitcoin, with the ETH/USD pair adding just 1.2% week on week.
In the broader altcoin space, Solana(SOL) has veered ahead with a 15.5% weekly gain, followed by slightly lower gains from Dogecoin (DOGE), Toncoin (TON) and Shiba Inu (SHIB).
Global cryptocurrency market capitalisation currently stands at $2.39 trillion, with bitcoin dominance at 54.7%.
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