Bitcoin, the leading digital currency, dipped below the $70,000 mark on Wednesday as the crypto market experienced a notable pullback. The retracement from highs over $70,000 resulted in many alternative cryptocurrencies (altcoins), including Ethereum (ETH), registering losses greater than 5%. This market volatility has captured investor attention as they keenly await the imminent release of US inflation figures.
Economic Data Influencing Crypto Dynamics
The fluctuations in the cryptocurrency sphere are largely associated with the anticipation of the March US inflation data, scheduled for release today at 3:30 PM GMT+3. Predictions suggest a 3.4% year-on-year increase and a 0.3% month-on-month rise in inflation for March. When setting aside more unpredictable elements like food and energy, core inflation is expected to climb by 3.7% year-on-year and 0.3% month-on-month.
A Bloomberg poll of economists points towards a potential moderation in the March inflation numbers, hinting at the possibility that the Federal Reserve might have additional leeway to contemplate reducing interest rates.
Market Snapshot: Bitcoin and Altcoins’ Performance
As the market braces for the inflation news, Bitcoin witnessed a reversal from its weekly peak of $72,668, descending to $68,381 by April 9. Presently, Bitcoin hovers just beneath the critical $70,000 level, signifying a 63.93% surge since the commencement of the year.
The altcoin sector followed Bitcoin’s downturn, with many suffering steep value drops. Ethereum, often referred to as the ‘altcoin king,’ saw its valuation decrease by 5.03% over the last 24 hours, currently trading at $3,515, despite enjoying a 54.09% increase since the year’s start.
Per CoinMarketCap’s insights, the day’s top performer is Fantom (FTM), priced at $1.03 and up by 10.34%, with Bittensor (TAO) and Toncoin (TON) also making notable gains.
Points to Take into Account
- Short-term price volatility is expected for both Bitcoin and altcoins during the release of US inflation data.
- Investors should monitor the Federal Reserve’s response to inflation rates for potential impacts on the crypto market.
- Ethereum and other altcoins tend to follow Bitcoin’s trend, which can inform investment strategies.
The imminent US inflation data release is poised to potentially prompt further price oscillations for BTC and altcoins, keeping investors on their toes for near-term market direction.