Bitcoin recovers after US-CPI driven dip, ENS, BONK, SPX6900 lead altcoin recovery

Bitcoin rebounded from Tuesday’s slump after bulls held the $115,000 support, trimming earlier losses. The broader crypto market followed suit, with total market capitalisation climbing back above $3.8 trillion and reaching an intraday high of $3.838 trillion. However, sentiment turned cautious amid renewed macro uncertainty. The Crypto Fear & Greed Index slipped three points to 70, though it remained in the “Greed” zone. Altcoin markets regained momentum alongside Bitcoin, as it began retracing its path toward the $120,000 level. What’s next for Bitcoin? Bitcoin’s recent dip followed the release of the June U.S. Consumer Price Index (CPI), which showed inflation climbing for the second month in a row. Headline inflation rose to 2.7% year-over-year, the highest since February, while core inflation increased to 2.9%, just below expectations. The monthly rise in CPI was 0.3%, the steepest since January, reinforcing concerns that inflation remains persistent, particularly in key categories such as food and transportation. The data tempered market expectations of a near-term shift in U.S. Federal Reserve policy. Although the lower-than-expected core CPI figure offered some relief, rising headline inflation dampened hopes of a dovish outcome at the upcoming July Federal Open Market Committee (FOMC) meeting. As of now, CME FedWatch data shows a 54.3% probability of a rate cut in September, leaving markets in a wait-and-see mode ahead of the U.S. Producer Price Index (PPI) report due later this week. Compounding the pressure were concerns over potential trade escalation between the US and Russia. Washington’s threat to impose 100% tariffs unless the Ukraine conflict is resolved within 50 days has added another layer of uncertainty, slowing the pace of the recent crypto rally. Profit-taking further weighed on prices as Glassnode data shows that investors holding Bitcoin for over five months accounted for 56% of realized profits during the downturn, collectively offloading $1.96 billion. Miners also joined in. According to on-chain data from CryptoQuant, the Miners’ Position Index (MPI) rose above 2.7, which signals an uptick in Bitcoin transfers from miners to exchanges. Historically, such movements often precede short-term corrections, as miners look to lock in gains after strong price rallies. However, analysts note that this MPI level remains far below extremes seen during past market tops. Some see the current trend as consistent with a typical bull cycle, where brief consolidations or pullbacks are followed by renewed upward momentum. Further on-chain analysis by CryptoQuant contributor Onchain School highlighted a spike in profit-taking from long-term holders about 10 days ago. While this didn’t prevent Bitcoin from notching new highs, it signals that older coins are being moved, often an indicator of top-cycle selling. Despite the temporary pressure, Bitcoin’s defense of the $115,000 level has revived bullish sentiment. With the June PPI data now released, showing wholesale inflation remained flat, markets are shifting focus to upcoming Fed guidance, as traders watch whether Bitcoin can regain strength and attempt another breakout above $120,000. Bitcoin still has room to run Despite hitting new all-time highs earlier this week, analysts say Bitcoin is not yet in overheated territory. According to CryptoQuant’s Axel Adler Jr., the market has not triggered a “Peak Signal”, a metric that typically appears when Bitcoin reaches major tops. The signal, based on normalized price models and coin destruction metrics, remains absent, suggesting the current cycle may still have upside potential. See below. Axel 💎🙌 Adler Jr @AxelAdlerJr · Follow The Peak Signal only appears at major market tops, and it hasn’t shown up this time suggesting we’re not at a peak yet. 11:13 AM · Jul 16, 2025 343 Reply Copy link Read 26 replies Supporting this view, analyst and CryptoQuant contributor Crypto Dan pointed to Bitcoin’s Realized Cap-UTXO Age Bands, which also show no signs of excessive market froth. Bitcoin: Realized Cap – UTXO age bands (%). Source: Crypto Dan These metrics track the realised value of Bitcoin across different age cohorts and currently reflect a healthy distribution, not one typically seen during overheated conditions. Analysts are also analysing cost-basis levels of short-term holders to identify potential inflection points in Bitcoin’s price trend. CryptoQuant’s Crazzyblockk recently flagged several cost-basis levels derived from the realized price model that could act as key technical zones. On the upside, $124,000 marks the STH cost basis pushed one standard deviation above average, a level historically linked to local tops and profit-taking zones. A breakout above this could open the door to the next resistance band at $136,000, the most aggressive STH threshold. This level often coincides with overbought conditions and heightened unrealized profits for recent buyers. To the downside, immediate support lies near $113,000, followed by $111,000, the average acquisition price of Bitcoin holders from the past month. The most critical level to watch is $101,000, which represents the base STH realized price. Holding above this zone is seen as a key indicator of the bullish structure remaining in the short-medium term. At the time of writing, Bitcoin was hovering just below the $120,000 mark. A decisive break above this psychological threshold could reignite bullish momentum, provided macroeconomic headwinds do not undermine market confidence. In that scenario, many analysts speculated that the next technical target for Bitcoin would likely fall near the $130,000 mark, which also aligns with the key resistance zones highlighted in short-term holder cost-basis models. Top altcoin gainers of the day Alongside Bitcoin, the altcoin market rose 15.5% over the past 24 hours, reaching a total market cap of $1.49 trillion at the time of writing. This came as the Altcoin Season Index score increased by 6 points to 36, indicating more altcoins are starting to outbid BTC’s performance, signalling an early shift in market dynamics toward a potential altcoin season.. Ethereum, the largest altcoin by market cap, posted a 9% gain during this period, slightly ahead of XRP, Solana (SOL), Dogecoin (DOGE), and Cardano (ADA), which recorded gains between 4% and 8%. Ethereum Name Service (ENS), Bonk (BONK), and SPX6900 (SPX) showed the best performance among the top 100 altcoins today, with all of them netting gains around 20%. See below: Source: CoinMarketCap Ethereum Name Service : As a core part of the Ethereum ecosystem, ENS has benefited from Ethereum’s rally over the past week, which has strengthened bullish sentiment across related tokens. ENS climbed to a five-month high of $27.33 earlier today before stabilising at $26.70, bringing its market cap to $976 million at press time. Bonk : Bonk’s rally today builds on momentum sparked by news that Grayscale Investments has added BONK to its expanded institutional monitoring list. As such, traders believe BONK is now on Grayscale’s radar for potential inclusion in future investment products, like trusts or ETFs. Any sort of institutional involvement is typically considered bullish, especially for hype driven memecoins like Bonk. SPX6900 : SPX6900 extended its rally after breaking out of a bullish flag pattern, with momentum further boosted by softer-than-expected U.S. PPI data released earlier today. The cooling inflation print revived risk appetite across speculative assets, helping SPX climb over 22% to a new all-time high of $1.85, before easing slightly at press time. The post Bitcoin recovers after US-CPI driven dip, ENS, BONK, SPX6900 lead altcoin recovery appeared first on Invezz

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