Why is the Crypto Market Down Today?

Why is the Crypto Market Down Today?

The post Why is the Crypto Market Down Today? appeared first on Coinpedia Fintech News

Despite increased price volatility in the crypto assets post-Bitcoin-Halving, the top tokens constantly display a neutral sentiment in their respective charts, indicating uncertainty in the market’s future course. 

The recent freefall triggered by Bitcoin’s decline has led to significant liquidations totaling over $157 million within the last 24 hours. Bitcoin’s price drop from its recent highs has prompted a bigger sell-off across the crypto market, impacting altcoins on a larger scale. 

Bitcoin’s intraday lows of $62,389 marked its lowest point in over a week, contributing to a negative sentiment in the market. Moreover, it continues to trade in a consolidated range between $61,025 and $73,754 since the start of March, indicating a weak price action for the BTC price. 

Altcoin Avalanche: Shiba Inu, Solana Take a Dive!

This downward pressure extended to other cryptocurrencies, with many experiencing losses ranging from 2% to 15%. Notably, Solana (SOL) and Shiba Inu suffered approximately 6% declines, while meme coins associated with Solana, such as Dogwifhat and Bonk, experienced even steeper losses, falling by 11.80% and 13.45%, respectively.

The swift price downturn caught some investors off guard, resulting in millions of liquidations across various crypto exchanges. CoinGlass data indicates that the liquidations amounted to $157.29 million, with Bitcoin accounting for a significant portion at $42.22 million.

Investors Caught Off Guard!

However, the downturn in the cryptocurrency market happened with the release of higher-than-expected inflation data, raising investor concerns about the global economy’s outlook. CNBC reported that the core personal consumption expenditures (PCE) price index, excluding food and energy, grew 2.8% year on year in March, matching February and slightly exceeding expectations.

Fed’s Plan for Rate Hike

The Federal Reserve targets 2% inflation, a threshold that the core PCE has exceeded for the past three years. The Fed closely monitors the PCE because it adjusts for changes in consumer behavior. This latest inflation report follows previous negative inflation news, prompting speculation that the Fed may maintain interest rates unchanged until at least the summer unless there are significant changes in the data.

High Stakes at FOMC Meet

With the Federal Open Market Committee (FOMC) meeting just four days away, all eyes are on the decisions that will shape monetary policy soon. The outcomes of this crucial gathering could impact both conventional financial markets and the cryptocurrency world in the months ahead.

One thing’s for sure: the next few days will be catastrophic for investors.