Bitcoin Bounces Back Above $81,000 Despite Inflation Scare

Bitcoin's price has shown resilience in the face of the April CPI print, rebounding to above $81,000 after a brief dip to $79,879 on Tuesday. The largest cryptocurrency dropped in reaction to the hotter-than-expected inflation data, but quickly recovered to end the session up 0.3% over 24 hours.

Among major altcoins, Binance Coin (BNB) led the gains with a 2.5% increase to $677, while Dogecoin added 1.3% to $0.1114. Ethereum dropped 0.3% over 24 hours to $2,300 and is now down 3.2% on the seven-day period.

The CPI print had a more significant impact on traditional markets, with the S&P 500 falling 0.2% and the Nasdaq 100 dropping 0.9%. Elevated energy prices are adding to inflation pressure globally, with Japan's 20-year bond yield breaching its January peak to touch the highest level since 1997.

Despite the macroeconomic uncertainty, crypto fund inflows remain positive, with global crypto funds absorbing $858 million last week. Bitcoin short positions experienced outflows of $14 million, indicating a shift in market positioning that could precede upward price movements.