The decline in the cryptocurrency market, including Bitcoin, continues. Investors are cautiously approaching economic indicators and interest rate decisions ahead of the central bank meeting.
As the Federal Reserve’s decision approaches, the United States Consumer Price Index (CPI) data showed an annual inflation rate of 3.1%. Monthly inflation showed a 0.1% increase, and the core inflation rose by 4% annually.
Inflation remaining above the Federal Reserve’s target of 2% has increased investor expectations. The CME FedWatch Tool indicates a 98.2% probability that there will be no change in interest rates.
Profit-taking and economic conditions may have triggered the decline in the market. Bitcoin, Ethereum, and other major cryptocurrencies reached the highest levels of the year last week when there was no negative situation in the market.
Furthermore, investors are seeking clarity on the state of the economy with the announcement of the United States Producer Price Index (PPI) data. This could lead to questioning of crypto transactions by investors and affect market sentiment.