Bitcoin and major cryptocurrencies advanced on Wednesday, November 11, recovering some of the previous session's losses as buying interest returned to digital assets despite expectations of further US interest rate increases.
The recovery followed a difficult week for cryptocurrencies, with investors reassessing valuations after stronger-than-expected US inflation reinforced the prospect of tighter Federal Reserve monetary policy.
Price overview
As of 20:00 GMT, Bitcoin traded near $74,400, up approximately 1.3%, after moving between $73,193 and $74,789.
Ethereum advancing approximately 1.7% to $2,080, after reaching a session high near $2,104.
Solana trading around $85, while XRP hovered near $1.07.
Bitcoin recovers from recent losses
Bitcoin attracted renewed buying after Tuesday's decline, when the cryptocurrency briefly fell below $73,000 amid concerns about US monetary policy.
Despite Wednesday's rebound, Bitcoin remained substantially below its levels from the previous week, reflecting continued caution among investors.
Ethereum also recovered, although its recent losses have been considerably steeper than Bitcoin's.
Fed policy limits recovery
October's US consumer price index increased 0.4%, exceeding expectations of 0.3%, while core inflation advanced 0.3%.
The figures reinforced expectations of another Federal Reserve interest rate increase in December.
Higher borrowing costs can reduce demand for speculative assets, particularly when Treasury yields offer investors more attractive returns.
Market outlook
Bitcoin faces immediate resistance near $74,800, followed by the psychological $75,000 level, while support stands around $73,200.
Ethereum could encounter resistance near $2,105, with initial support around $2,040.
A sustained move above these resistance levels could strengthen the recovery, although uncertainty surrounding US interest rates continues to limit investors' appetite for risk.
