Cryptocurrency News
With inflation data anxiety on full display, financial markets are experiencing significant turbulence on Thursday, particularly impacting cryptocurrencies as investors eagerly await the crucial Consumer Price Index (CPI) release.
At 8:30 AM Eastern Time, the U.S. Bureau of Labor Statistics will reveal the latest inflation figures, which could have a substantial influence on Federal Reserve policy and overall market sentiment.
Cryptocurrency markets saw a sharp decline, with Bitcoin (BTC) dropping 2.5% to $60,700 and Ethereum falling 2.3% to $2,375. This drastic shift erased all gains made the previous week, according to data from CoinGecko.
Senior market analyst at FxPro, Alex Kuptsikevich, attributed this downturn to macroeconomic factors, citing the appreciation of the dollar and increased attractiveness of bonds as reasons behind the investor unease in the crypto market.
The total valuation of the cryptocurrency market dropped 3.4% in the last day to $2.2 trillion, contrasting sharply with the S&P 500 index’s recent all-time highs. The Crypto Fear & Greed Index dropped into the “fear” zone at 39 while traditional equity markets remain in “greed” territory at 72.
Analysts are now closely monitoring key support levels for Bitcoin as market pressures intensify.
Burak Kesmeci, a contributor at CryptoQuant, highlighted the importance of the average cost of short-term Bitcoin holders in determining market trends. He mentioned that specific price levels could indicate shifts in bullish or bearish sentiment among investors.
In addition to market pressures, news emerged earlier this week that the U.S. Supreme Court declined to hear an appeal challenging the legality of the U.S. government’s plans to sell 69,000 seized Bitcoin.
Analysts like Valentin Fournier from BRN believe that despite potential sell pressure, the market has already factored in this news, and Bitcoin could bounce back from the current dip.
Looking ahead to the CPI data, economists anticipate a monthly increase of 0.1% in September, slightly down from August. The annual rate is expected to show a 2.3% rise compared to August’s 2.5%, while core CPI is projected to rise by 0.2% month-over-month and maintain a 3.2% annual increase.
Edited by Stacy Elliott.
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