Bitcoin tapped $83,000 on Monday morning, its first visit to that level since the inflation data sent it tumbling in the middle of last week. The move came after a Sunday dip to $80,500 that had plenty of traders bracing for a Black Monday. It never came. US futures are green and the broader crypto market is up more than 1% over 24 hours.
The inflation scare that started it
The trouble began with the CPI report on October 14 and the PPI release a day later. Both came in above expectations, which revived the argument that inflation isn't heading down the way markets hoped. Bitcoin dumped from over $84,000 to a monthly low just under $80,000 in about 24 hours.
It didn't stay there. BTC bounced to $82,800, then got rejected again on Friday alongside most financial markets and slipped back below $81,000. That set up a nervous weekend.
Saturday's flash crash and the 1987 talk
On Saturday evening there was a flash crash. The timing — 39 years after the 1987 crash — did the rest. Calls for a Black Monday piled up over the weekend, and analysts were predicting another black swan event as markets opened Monday morning.
That forecast looks wrong so far. Bitcoin is up over 1% today and sitting around $83,000. Its market cap has climbed to $1.660 trillion, and dominance over altcoins is well above 60%.
Altcoins defy the doom
Most altcoins are in the green today, which wasn't the script anyone was reading on Sunday night. Ethereum has defended the $2,400 support after a mild increase since yesterday. XRP is above a key support level and trading close to $1.32. SOL, HYPE, XMR, LINK, NEAR, and BCH have posted similar increases.
ZEC is up 2.6% to $1,170. The biggest gains come from ARB at 9% and RAY at 7%. Not everything is participating — TIA, STRK, and BTW have posted the most substantial losses on the day. The cumulative market cap of all crypto assets is up over 1% in 24 hours and now sits at $2.760 trillion.
What's still hanging over the market
The inflation prints that started this mess haven't been walked back. CPI and PPI both exceeded expectations, and the concern that inflation isn't going down hasn't gone away just because Monday opened green. Bitcoin's rebound to $83,000 is a relief for now, but it's the same level that got rejected on Friday. Whether that holds through the week is the open question.
The next test is how US equities trade through the session. Futures are pointing up, but a green open that fades by the close would put the flash-crash lows back in play.
