Crypto Markets Rally After Softer-Than-Expected US Inflation Report

Crypto markets caught some relief on Friday, Feb. 13, as investors digested a softer-than-expected U.S. inflation report.

Total crypto market capitalization surged almost 5% over the past 24 hours to $2.44 trillion, while most large-cap crypto assets saw moderate gains on the day.

Bitcoin (BTC) climbed back over 69,000, up 4.5% today and pushing its weekly price change into the green, up 1.7%.

Ethereum (ETH) rose over 7.5% to trade back above $2,000, bringing weekly gains to 4.4%.

Figure Heloc (FIGR_HELOC) waws the only top-10 assets in the red this morning, though it was down less than 1%. BNB saw subdued gains, up just 1.7% today.

Disciplined Leverage

Sentiment remains unstable despite the boost in prices. Analysts at glassnode noted in an X post on Thursday, Feb. 12, that Bitcoin’s net unrealized profit/loss has slipped back into the hope/fear regime at around 0.18, indicating thin profit cushions.

“This regime tends to be reactive,” glassnode said, adding that rallies often meet sell pressure while downside moves can extend as conviction fades.

Paul Howard, senior director at Wincent, a high-frequency crypto market maker, told The Defiant that markets are showing “a degree of fragility,” as traders remain worried about aftershocks after the Oct. 10 crash that wiped out nearly $20 billion in leveraged positions. Howard elaborated:

“Rumours surrounding the fallout from 10/10 — reportedly impacting at least one U.S.-based firm — have contributed to a more cautious tone in certain segments. This reinforces the importance of prudent risk management and disciplined use of leverage, particularly in an environment where liquidity can tighten quickly.”

The Crypto Fear & Greed Index remains deep in “extreme fear” territory, though it slightly improved after yesterday’s low.

Big Movers and Liquidations

Looking at the top-100 assets by market cap, Pi Network (PI) led gainers today, up 10%, followed by Midnight (NIGHT), up 9%.

On the downside, World Liberty Financial (WLFI) was today’s biggest loser among large-caps, though it’s down just 2.3%.

As for liquidations, according to CoinGlass data, roughly 90,640 traders were liquidated over the past 24 hours, with total losses nearing $260 million. Bitcoin accounted for $118.2 million and Ethereum for $56 million.

ETFs and Macro Conditions

On Thursday, Feb. 12, spot Bitcoin ETFs saw even heavier outflows than the day before, posting net outflows of $410.4 million, data from SoSoValue shows. Spot Ethereum ETFs, meanwhile, also recorded net outflows, losing $113.1 million.

In terms of macro dynamics, today the U.S. Bureau of Labor Statistics released its latest Consumer Price Index (CPI) report, showing prices rose 2.4% year-over-year in January, just below the 2.5% forecast by economists surveyed by Dow Jones. Core inflation, which excludes food and energy, matched expectations at 2.5%.