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Why is the cryptocurrency market down today?
Despite the increased volatility of cryptocurrency prices post-Bitcoin HalvingMajor tokens consistently show neutral sentiment on their respective charts, indicating uncertainty about the future course of the market.
The recent free fall triggered by Bitcoin’s decline has led to significant liquidations totaling over $157 million in the past 24 hours. The price of Bitcoin the decline from recent highs has prompted a larger sell-off across the cryptocurrency market, impacting altcoins on a larger scale.
Bitcoin’s intraday lows of $62,389 marked its lowest point in over a week, contributing to negative sentiment in the market. Furthermore, it continues to trade in an established range between $61,025 and $73,754 since early March, indicating weak price action for the market. BTC price.
Altcoin Avalanche: Shiba Inu, Solana Dive In!
This downward pressure has spread to other cryptocurrencies, many of which have suffered losses ranging from 2% to 15%. In particular, Solana (Sun Shiba Inu suffered a decline of about 6%, while meme coins associated with Solana, such as Dogwifhat AND Goodthey suffered even larger losses, falling 11.80% and 13.45% respectively.
The rapid drop in prices caught some investors by surprise, prompting millions of liquidations across various cryptocurrency exchanges. Data from CoinGlass indicates that the settlements amounted to $157.29 million, of which Bitcoin represents a significant share of $42.22 million.
Also check: Is Bitcoin (BTC) in Control? BTC price is likely to drop 20% soon.
Investors were caught off guard!
However, the cryptocurrency market’s downturn occurred as higher-than-expected inflation data was released, raising investor concerns about the outlook for the global economy. CNBC reported that the price index for personal consumption expenditures (PCE), excluding food and energy, rose 2.8% year-over-year in March, in line with February and slightly higher than expectations.
The Fed’s plan for a rate hike
The Federal Reserve is targeting 2% inflation, a threshold that core PCE has exceeded for the past three years. The Fed closely monitors the PCE as it adapts to changes in consumer behavior. This latest inflation report follows previous negative inflation news, suggesting that the Fed could keep interest rates unchanged at least until the summer, unless there are significant changes in the data.
The stakes are high at the FOMC meeting
With the Federal Open Market Committee (FOMC) meeting just four days away, all eyes are on the decisions that will soon shape monetary policy. The results of this crucial meeting could impact both conventional financial markets and the world of cryptocurrencies in the coming months.
One thing is certain: the next few days will be catastrophic for investors.
Read also: Weak Growth, High Inflation: Is a Massive Cryptocurrency Collapse Coming?