Bitcoin Dips, Ethereum, XRP, Dogecoin Rise: Analyst Predicts 'BTC Goes Up' if Consumer Inflation Comes in Better Than Expected

Leading cryptocurrencies held steady on Tuesday as equities extended losses, with investors bracing for this week’s key inflation dataCryptocurrency24-Hour Gains +/-Price (Recorded at 9:25 p.m. EDT)Bitcoin (CRYPTO: BTC)-0.44%$63,704.13Ethereum (CRYPTO: ETH) +0.32%$1,881.51XRP (CRYPTO: XRP) +0.90%$1.02Solana (CRYPTO: SOL) +0.62%$76.33Dogecoin (CRYPTO: DOGE) +3.41%$0.07231Crypto Market Consolidating?Bitcoin remained within a tight range, fluctuating between $63,100 and $64,400, while its 24-hour trading volume decreased. Ethereum also experienced a dip in trading volume, while XRP and Dogecoin closed higher from the previous day.Cryptocurrency-related stocks edged lower, with Strategy Inc. ) and Bitmine Immersion Technologies Inc. ) closing down 1.27% and 0.06%, respectively.Over $170 million was liquidated from the cryptocurrency market in the last 24 hours, with long position traders bearing the brunt of the losses, according to Coinglass data.Bitcoin’s open interest rose 0.94% over the last 24 hours. A jump in open interest while the price goes down typically indicates new sellers entering the market and opening fresh short positions, which in turn could be a sign of bearish sentiment."Fear" sentiment prevailed in the market, according to the Crypto Fear & Greed Index.Top Gainers (24 Hours)Cryptocurrency (Market Cap>$100 M)Gains +/-Price (Recorded at 9:27 p.m. EDT)Union (U) +222.97% $0.05907Velvet (VELVET) +38.49% $0.5987Humanity (H) +11.26% $0.09075The global cryptocurrency market capitalization stood at $2.19 trillion, following a decline of 1.15% over the last 24 hours. Read Also: Stocks Close in the RedStocks extended their losses on Tuesday. The Dow Jones Industrial Average fell 184.13 points, or 0.34%, to end at 53,791.85. The S&P 500 declined 0.32% to close at 7,728.20, while the tech-heavy Nasdaq Composite shed 0.60% to end at 26,445.45.The deadlock between the U.S. and Iran dragged on as President Donald Trump responded to Iran’s demand for reparations by placing his own demands.Investors will next focus on a critical round of inflation figures, as the July consumer price report is scheduled for Wednesday and the producer price index for Thursday.Bitcoin Waiting for CPI Report?Michaël van de Poppe, a widely followed cryptocurrency analyst and trader, noted that Bitcoin typically dips in the days leading up to CPI releases, adding that if the figures come in better than expected, the asset will likely rise.If CPI data comes in greatly tomorrow: goes up. Just simple.As you can see in this chart, the days prior to the release of the CPI data, the markets are going down.This time, nothing changed. Just the same standard. On-chain analytics firm CryptoQuant spotlighted that Bitcoin reserves on Binance have surged to their highest level since February“Binance’s reserves reaching their highest level since February represents a significant shift compared with periods of lower Bitcoin supply on the platform,” the research firm said. “This signal becomes more significant if reserves continue to rise while the price weakens or exchange deposit inflows increase.”Binance Bitcoin Reserves Surge to Their Highest Level in Six Months"Binance's reserves reaching their highest level since February represents a significant shift compared with periods of lower Bitcoin supply on the platform." – By Read Also: Bitcoin's Biggest Rival Isn't Ethereum. It's the AI Trade Photo: Sodel Vladyslav / Shutterstock