The U.S. April Consumer Price Index came in at 3.8% year-over-year, above economists' estimates, driven largely by higher gasoline prices amid the Iran conflict. Bitcoin initially dropped to $79,879 late Tuesday but recovered to $81,208 by Wednesday morning in Asia, trading a $1,400 range and ending the session up 0.3%. The dip was aggressively bought.
BNB Outperforms, ETH Slips Further
Among major cryptocurrencies, BNB led the pack with a 2.5% gain to $677, while Dogecoin rose 1.3% to $0.1114. Ether dropped 0.3% over 24 hours to $2,300, extending its weekly decline to 3.2% — the weakest performer in the cohort. Solana slipped 0.6% to $95.52, and XRP traded at $1.45, down 0.5% on the day.
Traditional Markets Hit Harder; Chip Stocks Tumble
The inflation scare rattled equity markets more than crypto. The S&P 500 fell 0.2%, while the Nasdaq 100 dropped 0.9%, with semiconductor stocks bearing the brunt after weeks of outsized gains. The rate-sensitive two-year U.S. Treasury yield held just under 4%, while Japan's 20-year bond yield breached its January high, reaching levels not seen since 1997 as elevated energy prices add global inflation pressure.
Asian equities clawed back early losses after the White House confirmed Nvidia CEO Jensen Huang would join President Donald Trump's trip to China, lifting chipmaker futures.
Crypto Fund Inflows Remain Strong, Shorts Exit Heavily
Underlying flows stayed positive. CoinShares reported global crypto fund inflows of $858 million last week, with bitcoin products absorbing $706 million, ether $77 million, solana $48 million, and XRP $40 million. Notably, bitcoin short positions saw outflows of $14 million — the largest weekly short unwinding of 2026. Money is moving away from bearish bets even as the macro tape turns choppier, a positioning shift that typically precedes upward grinds rather than capitulations.
Analyst: 200-Day MA Still a Barrier, but Pullback Is Just a Breather
FxPro's chief market analyst Alex Kuptsikevich said the broader sentiment index has settled just below the midpoint of its range, recording readings of 47, 48 and 49 over the past three days, suggesting bears still have a slight edge. Bitcoin "lost its upward momentum as it approached the 200-day moving average," he noted. However, he added: "Although this line is trending downwards, the market has failed to break through it for the past six days. On the other hand, as the decline is quite modest, it resembles nothing more than a breather following a rally."