Bitcoin Defies Hot April CPI Report, Holds $80K Support While US Stocks Tumble

• U.S. equities declined following the inflation report, while the broader cryptocurrency market remained relatively stable.
• Analysts said Bitcoin’s ability to avoid a sharper selloff could indicate improving market resilience.
• Traders are also watching the Senate’s upcoming CLARITY Act vote, which analysts believe could act as a catalyst for crypto markets.

Bitcoin (BTC) held above the $80,000 level on Tuesday after April’s core inflation reading came in hotter than expected, sending U.S. equities lower while the cryptocurrency market remained relatively stable.

Bitcoin’s price edged just 0.1% lower over the last 24 hours to trade near $80,700 at the time of writing. Despite the inflation data, the cryptocurrency avoided the sharper declines seen in U.S. equities. Retail sentiment on Stocktwits around the apex cryptocurrency remained in ‘neutral’ territory over the past day, accompanied by ‘normal’ levels of chatter.

The broader cryptocurrency market also held relatively firm, slipping just 0.5% in the last 24 hours.

According to one crypto analyst, 10 of the last 11 CPI reports were followed by downside moves for Bitcoin in the subsequent week. However, Bitcoin rallied after the most recent CPI release. “The trend could be shifting here,” they wrote.

Analysts See Bitcoin Resilience Turning Into Bullish Signal

Matt Mena, crypto research strategist at 21Shares, told The Wall Street Journal that Bitcoin’s ability to remain above key support despite hotter inflation data could point to underlying market strength.

“The fact that BTC has not broken down on this print is arguably more telling than the number itself,” Mena stated. “The market was positioned for hot inflation, absorbed it, and is still sitting above the $80K support level.”

Core consumer prices, excluding food and energy, rose 0.4% in April from the previous month, above Wall Street expectations of 0.3%, according to MarketWatch data. On an annual basis, core CPI increased 2.8%, also slightly above estimates of 2.7%.

Headline inflation rose 0.6% in April and 3.8% year-over-year, matching economist forecasts. However, both headline and core inflation remain above the Federal Reserve’s long-term 2% target.

Mena added that if macro pressure continues easing, Bitcoin could retest resistance around $82,000 before making a push toward $85,000. He also pointed to the upcoming Senate vote tied to the CLARITY Act as a potential catalyst that could support a move toward $90,000.

U.S. Stocks Slide While Crypto Market Remains Stable

While crypto prices stayed relatively contained, U.S. equities moved lower following the inflation release.

The SPDR S&P 500 ETF (SPY) dropped 0.61%, the SPDR Dow Jones Industrial Average ETF (DIA) slipped 0.48%, and the Nasdaq-100 tracking Invesco QQQ Trust (QQQ) tumbled over 1%. Retail sentiment around SPY on Stocktwits trended in ‘bullish’ territory over the past day, accompanied by ‘normal’ levels of chatter. Retail sentiment around SPY on Stocktwits remained in ‘bullish’ territory over the past day, alongside ‘normal’ levels of chatter.

Overall, the S&P 500 has gained over 7% this year, while Bitcoin’s price has fallen over 7%.

Read also: Michael Saylor Says CLARITY Act Markup Could Unlock ‘Next Wave’ Of Digital Capital

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