The release of the US Consumer Price Index (CPI) data, which showed a modest increase in inflation, led to a ripple effect in the cryptocurrency market with Bitcoin‘s value slipping. Amidst this fluctuation, Stacks (STX) has exhibited a remarkable upward trajectory. The CPI, a measure of the average change in prices over time that consumers pay for a basket of goods and services, saw a 0.3% rise in January as reported by the Bureau of Labor Statistics.
Risk Shifts Affect Cryptocurrency Prices
Investor appetite for riskier assets like cryptocurrencies tends to diminish when central banks consider raising interest rates to combat high inflation. Consequently, these investors often turn to more secure investment options. In response to the economic data, Bitcoin’s price decreased by 1.7%, settling at $48,990. Further emphasizing the market’s reaction, crypto analytics company Coinglass noted that over 51,699 investors experienced liquidations, leading to approximately $154.85 million in liquidations within a day. While the altcoin market saw a selloff, Stacks managed to go against the grain with a 7.8% appreciation in value.
Stacks Demonstrates Resilience and Growth
Stacks has been experiencing a positive trend, beginning with a recovery from its $1.45 support level in early February. This momentum continued, resulting in a 9-day streak of gains and a nearly 50% increase in value, pushing its price to $2.157. DefiLlama, an on-chain analytics firm, reported that Stacks’ Total Value Locked (TVL) surged to $70.21 million, indicating a 50% growth in three weeks. This growth signals strong investor participation and confidence within the Stacks DeFi ecosystem. With the current market recovery, STX price has broken past the $2.06 resistance, potentially aiming for higher targets of $2.475 and $2.82.