Bitcoin moves back above $81,000 after upbeat CPI figures, while BNB and DOGE lead the broader market higher.

Bitcoin held above $81,000 after briefly dipping below $80,000 in response to a stronger-than-expected U.S. inflation report, while BNB and dogecoin outpaced major tokens as capital continued flowing into crypto funds.

The leading cryptocurrency dropped to around $79,800 late Tuesday after April’s CPI came in at 3.8% year-over-year, exceeding forecasts and driven largely by higher energy prices tied to ongoing geopolitical tensions. The move lower was short-lived, with buyers quickly stepping in to lift bitcoin back to roughly $81,200 by Wednesday’s Asian session, leaving it slightly higher over the past day.

Across the broader market, BNB led gains with a roughly 2.5% increase, while dogecoin added more than 1%. Ether remained under pressure, slipping on the day and extending its weekly decline. Solana and XRP also edged lower, pointing to mixed performance among large-cap tokens.

Traditional markets showed a more cautious reaction to the inflation data. U.S. equities drifted lower, with technology stocks—especially semiconductors—leading losses after a period of strong gains.

Bond markets reflected ongoing inflation concerns. The U.S. two-year Treasury yield hovered just below 4%, while Japan’s long-dated yields climbed to their highest levels in decades, underscoring persistent global price pressures.

Despite the macro backdrop, flows into digital assets remained strong. CoinShares reported $858 million in inflows into crypto investment products last week, with bitcoin attracting the majority of capital, followed by smaller allocations into ether, solana, and XRP.

A notable shift came from the derivatives market, where short bitcoin products saw $14 million in outflows—marking the largest weekly reduction in bearish positions this year. The move suggests investors are easing off downside bets even as broader conditions remain uncertain.

Sentiment indicators, however, remain slightly cautious, hovering just below neutral levels and indicating that bearish pressure has not fully subsided.

From a technical standpoint, bitcoin continues to face resistance near its 200-day moving average, a key level that has capped recent upside attempts. Still, the relatively modest pullback suggests consolidation rather than a reversal in trend.

Regulatory developments may be offering additional support. The recent surge in inflows coincided with progress on stablecoin regulation under the proposed CLARITY Act, which is expected to be reviewed by U.S. lawmakers soon. This has emerged as a rare positive catalyst in an otherwise challenging macro environment.

For now, bitcoin’s ability to remain above $81,000 despite elevated inflation and rising yields signals underlying demand. The next key test will come from upcoming economic data and regulatory developments, which could determine whether the current recovery can extend further.