Dogecoin led major cryptocurrencies higher on Wednesday with a nearly 3 percent daily gain, while bitcoin slipped near $63,700 and was the only large token in the red on both the day and the week. The divergence between altcoins and the leading cryptocurrency offered a glimpse of a market searching for direction amid a prolonged period of sideways trading.
BNB followed with a 2 percent gain to $614, while Tron rose almost 1 percent to just under 34 cents. XRP added over half a percent to just above $1, though it remained down 5 percent on the week, the worst weekly performance among the majors. Solana and ether both edged up to $76 and $1,890 respectively.
Altcoins Decouple From Bitcoin's Slump
The fact that Dogecoin and BNB outperformed while bitcoin slipped suggests that capital is rotating within the crypto market even as the largest cryptocurrency struggles to find momentum. Bitcoin has been trapped in a roughly $62,000 to $66,000 range for weeks, with ETF inflows offset by selling from miners and corporate holders.
Hyperliquid's HYPE was the only other major in the red, down over 1 percent to $54 and 3 percent lower on the week. The broad-based CoinDesk 20 index was roughly flat, reflecting the mixed performance across tokens.
Asian Equities Rally on Semiconductor Strength
Equities went the other way, powered by earnings. Korea's Kospi rallied 4.6 percent, with Samsung Electronics and SK Hynix both jumping around 7 percent on optimism over shareholder returns. MSCI's Asia Pacific gauge rose almost 1 percent on semiconductor strength.
In the U.S., CoreWeave surged 16 percent after hours on stronger-than-expected sales growth, and Super Micro Computer rose almost 8 percent on a revenue forecast above estimates, lifting Nasdaq 100 futures. The positive earnings season for tech and semiconductor companies provided a supportive backdrop for risk assets, even as crypto lagged.
Oil Climbs as Middle East Tensions Persist
Oil kept climbing. Brent rose over 1 percent to $90 a barrel, a sixth straight session of gains and its longest run since April, with traders still doubtful about a Middle East deal. Rising oil prices feed directly into inflation concerns, creating a complicated backdrop for investors hoping for a dovish pivot from the Federal Reserve.
All Eyes on CPI
Investors are focused on Thursday's U.S. CPI report and Middle East tensions. Lower inflation and a potential Fed pivot could fuel a relief rally in risk assets, even as rising oil prices threaten to push inflation higher.
Last week's U.S. job numbers were weak, a continuing narrative that, if supported by lower inflation, would cement expectations for Fed cuts by year-end, boosting liquidity and risk assets like bitcoin. Traders should watch for any hawkish pushback from Fed speakers, but the macro setup could lead to a relief rally if the CPI numbers come in lower than expected.
The market's cautious optimism stands in contrast to the positioning seen when hedge funds turned net-long on bitcoin futures earlier this month. Whether that optimism is justified will depend largely on what the inflation data shows.
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