Bitcoin price crossed the important resistance of $60,000, triggering a mini rally among other altcoins. BTC was trading at $60,500 on Wednesday morning, a few points below its highest point last week of $62,723.
Immutable X, Fantom, and Stacks rise
THORChain (RUNE), one of the biggest decentralized exchanges (DEX), was the best performer on Thursday, rising by almost 10% to $3.64. Data by DeFi Llama shows that ThorChain was the seventh-biggest blockchain in 24-hour volume, handling over $62 million in volume.
Immutable X (X), a leading layer-2 network focused on gaming and non-fungible tokens (NFT), was the second-best performer in the industry, rising by 7,15% to $1.25. The token rose as traders waited for the upcoming launch of The Watch, a high-profile game that will leverage its blockchain. Gram Voyage also announced that it would launch on Immutable soon.
Stacks (STX), a layer-2 network for Bitcoin, rose by over 5.8% to $1.52, while Fantom (FTM) rose to $0.37. Other top gainers on Tuesday were SATS, Celestia (TIA), Maker (MKR), and Ethena (ENA).
US inflation report
The important Producer Price Index (PPI) report published by the US Bureau of Labor Statistics (BLS) was a key driver for Bitcoin and these tokens.
That report revealed that the headline and PPI numbers softened faster than expected, triggering a big rally in the stock market. The Nasdaq 100 index rose by over 2%. US bond yields retreated to their lowest points in Months.
The PPI data came as traders waited for the crucial US consumer price index (CPI) data. If this report mirrors the PPI data, the Federal Reserve will likely cut rates in September.
Read more: US CPI Data: How Will it Impact Bitcoin, Ethena, and Celestia Prices?
Historically, cryptocurrencies and other riskier assets do well when the Fed slashes interest rates, making money cheap. Bitcoin rose to a record high of $69,000 in 2021 as interest rates remained zero. It then plunged to $15,700 in 2022 as inflation rose, triggering rate increases.
Altcoins like Immutable, Stacks, and Aptos rose because Bitcoin formed a bullish pennant chart pattern. A flagpole and a triangle pattern characterize this popular pattern. In most periods, this pattern results in a strong bullish comeback, which, in this case, could push Bitcoin to over $62,000.
Read more: Bitcoin at a Crossroads: What I Believe It Will Take to Rebound from the Recent Drop.
