Bitcoin managed to hold its ground this week even as the broader crypto market struggled, buoyed by a softer-than-expected core inflation reading that briefly lifted major digital assets on Thursday. The May consumer price index showed headline inflation still running hot on energy costs, but the underlying core figure provided enough relief for a short-lived bounce across cryptocurrencies.
Ether and large-cap altcoins, however, failed to sustain the rally and are now down 6% to 8% over the past seven days, according to CoinDesk. The divergence highlights growing selectivity among traders, with Bitcoin alone retaining its weekly gains as investors gravitate toward the most liquid and established digital asset.
Analysts at 10x Research, led by Markus Thielen, warned that the macro backdrop remains unfavorable. "We continue to view the current macro environment as a headwind for Bitcoin," Thielen said, pointing to persistent inflationary pressure above 4% that could weigh on both Bitcoin and gold in the near term.
Some market participants argue that Bitcoin's relative resilience signals an emerging decoupling from macro-driven risk assets. But the broader crypto complex remains vulnerable to further declines if headline inflation surprises to the upside, keeping the outlook highly uncertain.