Bitcoin Reverses Gains as Market Reacts to Lower-Than-Expected Inflation

The cryptocurrency market experienced significant fluctuations last week, with Bitcoin (BTC) and Ethereum reversing their gains following the US Consumer Price Index (CPI) data release. The CPI numbers showed a lower-than-expected inflation rate of 3.5%, prompting investors to reassess their risk-on positions.

BTC initially reacted positively to the news, surging to $65,500 on Wednesday before experiencing a gradual decline. It currently trades at around $63,210, down by more than 2% weekly.

Several altcoins have also suffered significant losses, with Hyperliquid's native token plummeting by over 12%, followed by SOL and ADA's drops of 6.5% and near 6%, respectively. In contrast, ONDO has jumped by almost 12%, while ZEC is up by 3.7%.

The upcoming FOMC meeting at the end of the month is now a key focus for market participants, as it may influence future monetary policy decisions.