The cryptocurrency market experienced a notable surge on Thursday, buoyed by U.S. core inflation data that slightly exceeded expectations, diminishing hopes for a significant rate cut by the Federal Reserve next week.

U.S. consumer prices edged up in August, with core inflation remaining somewhat persistent. The core Consumer Price Index (CPI) increased by 0.28% for the month, surpassing the anticipated 0.2% rise.

The likelihood of a 25-basis-point rate cut by the Fed on September 18 increased to 85% from 66% the previous day, while the chance of a more aggressive 50-bps reduction fell to 15% from 34%, according to CME FedWatch.

As of 1:30 pm IST, Bitcoin had risen 2.4% to $58,058, while Ethereum gained 1% to $2,362. Other major cryptocurrencies also saw gains: BNB rose 5.6%, Solana increased by 2.2%, Dogecoin advanced 2%, Toncoin was up 2%, Cardano climbed 4.5%, and Shiba Inu gained 1.2%.The CoinDCX Research Team noted, “The crypto market continued its upward trend as the CPI data came in neutral to positive, boosting market sentiment. This was further supported by a rise in global markets, helping Bitcoin and altcoins regain momentum.”

They added, “For Bitcoin, the key resistance level is at $61,600, while maintaining support above $56,000 is crucial to sustaining the bullish trend. Among altcoins, SUI has recently been a top performer.”According to the CoinSwitch Markets Desk, “Bitcoin has reclaimed the $58K level and is holding steady after briefly dipping below $56K yesterday. Positive net inflows into ETFs for the third consecutive day highlight increasing institutional demand.”The global crypto market cap increased by 2.12% to $2.04 trillion, with total market volume rising 11.6% to $70.89 billion. Stablecoins accounted for $65.13 billion of this volume, or 91.87%, according to CoinMarketCap.

In the last 24 hours, Bitcoin’s market cap fell to $1.148 trillion. Bitcoin’s dominance now stands at 56.21%, with its trading volume increasing 19.3% to $36.8 billion.

Tech view by ZebPay trade desk

In August, the U.S. Consumer Price Index (CPI) increased by 0.2%, aligning with expectations. However, this triggered a negative reaction in risky assets. The S&P 500 initially dropped by over 1.5%, but it quickly recovered and moved into positive territory. Bitcoin mirrored this volatility, briefly dipping to around $55,500 before rebounding to over $57,500, signaling strong buying interest at lower levels. In the past 24 hours, Bitcoin experienced a 2.5% drop, falling to $55,713 before climbing back to $58,293. During this period, Bitcoin liquidations totaled $13.17 million over 12 hours, with a daily liquidation volume exceeding $54.61 million due to leveraged positions being wiped out.

Over the past few weeks Bitcoin has been trading sideways in a broad range from $65,000 to $55,500 with low volumes. On a daily time frame, the asset is trading in a ‘Descending Channel’ pattern. Breakouts on either side of the pattern will further decide the trend for the asset. BTC has a strong support at $56,000 and $52,500 whereas $62,500 and $66,000 will act as a strong resistance

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