The The price of Bitcoin continues to show remarkable resilience despite US inflation coming in hotter than market expectations. The top crypto remains above the crucial $80,000 level even though the new Consumer Price Index (CPI) data is fueling concerns about the long-term interest rate hike in the United States.
According to the latest economic data, annual US CPI inflation rose to 3.8% in April, slightly exceeding market expectations of 3.7%, while inflation remained close to 2.8%. The drop in interest rates briefly pressured markets and risk markets, as traders now hope that the Federal Reserve can delay rate cuts that could last more than a year.
However, despite the uncertainty of the global economy, Bitcoin continues to rally near its current highs, which indicates a strong upward trend in crypto markets. In the past, BTC’s ability to stay strong during periods of rising prices often reflected institutional confidence and long-term accumulation.
At the same time, market experts believe that the integration of Bitcoin can lead to another important development in the main crypto market – the exchange of capital into altcoins.
Whales Continue to Accumulate Bitcoin as Markets Remain Cautious
New to the chain data from Santiment suggests that Bitcoin’s resilience above $80,000 is largely supported by a predatory whale. Wallets holding between 10 and 10,000 BTC collectively added more than 16,600 BTC last month, reflecting growing confidence among major market participants despite economic uncertainty surrounding the latest CPI data.
Interestingly, the quality of small shopping bags seems to be moving in the opposite direction. Addresses with less than 0.01 BTC have slightly reduced their exposure at the same time, indicating a high level of skepticism and short-term fear among traders.
Historically, such divergence has served as a strong indicator of the crypto market’s volatility. In previous years bulls, surges from whales and sharks as sell sentiment weakened often before major Bitcoin rallies and strong altcoin expansions.
The current setup shows that smart money may already be in the next phase of the market where participation in the market remains cautious. As long as the whale surge continues and Bitcoin remains above critical support levels, the potential for market growth and general weather remains high.
Will Bitcoin Price Stabilization Lead to Altseason?
History shows that altcoins often increase when Bitcoin enters a consolidation phase after a strong rally. A similar development was seen in 2021 when the US CPI rose from about 5% to 9%, but the crypto markets saw their strongest expansion.
Meanwhile, TOTAL3 rose from nearly $400 billion to $1.3 trillion, while Bitcoin rose to $69,000 and Ethereum surpassed $4,800. Now, despite the hotter than expected CPI data, Bitcoin continues to rise above $80,000 as TOTAL3 builds momentum. This suggests that capital may begin to slowly shift to altcoins if BTC remains stable.
While current trends may not exactly match 2021, the broader market trend showing Bitcoin stability could also create favorable conditions for a strong Altseason in the coming weeks.
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