Crypto market bloodshed: Why is everything going apart?
The cryptocurrency market is now trading in the red. This has been a significant blow to cryptocurrency investors. Such downturns frequently occur during the weekend, during historically unfavourable trading hours. Wall Street is open today, but crypto ecosystems are closing. The question is: Why?
The cryptocurrency markets are in the red!!
The cryptocurrency market is down today, with the whole industry market cap plunging by double digits due to large liquidations. At the time of writing, the worldwide crypto market capitalization is $2.73 trillion. This is a 2.96% decrease over the previous 24 hours. Bitcoin (BTC) has a $1.36 trillion market share, according to current market share. This corresponds to a 50.04% Bitcoin domination.
According to CoinGecko, the market capitalization of stablecoins is $155 billion, accounting for 5.69% of the total crypto market capitalization. Bitcoin (BTC) is currently trading at $69,018.58, down 3.4% from yesterday.
Ethereum (ETH), the second largest crypto currency, is currently valued $3,503.48, representing a 5.4% decrease from yesterday. Furthermore, the Bitcoin Fear and Greed Index is at 78. This suggests that investors are extremely greedy.
Today’s CPI report (April 10th) is another important reason driving to decreasing cryptocurrency prices. CNBC analyst Sara Min commented on the market reaction, stating that today’s US inflation data is likely to provoke a significant rise in risk assets. Traders are on edge because they don’t know how the FED (Federal Reserve) will set interest rates.
The concerning CPI numbers are not the only ones available. Investors are anticipating PPI, unemployment claims, and the ECB’s interest rate announcement on April 11. The CME FedWatch Tool predicts a 42.3% chance of the Fed funds rate remaining steady in June. CME puts the likelihood of a rate drop at 56.2%.
According to Dow Jones economic statistics, the March CPI measurement is predicted to climb by 0.3% month on month and 3.4% year on year. Analysts expect Core CPI, which excludes food and energy costs, to rise by 0.3% and 3.7%, respectively.
The cryptocurrency market is experiencing a market cycle that differs from previous bull runs. This is primarily due to the introduction of spot Bitcoin ETFs and the anticipated Bitcoin supply halving.
Despite the SEC’s approval of the BTC ETF, spot transactions have struggled from the start. On-chain data gathered lately reveals that net capital flows into all spot Bitcoin ETFs have gone negative, totaling $233.8 million.
Slowing Bitcoin ETF inflows suggest a reduction in investors’ risk appetite. However, all trade and investing prospects are not gone. And why is that? DeFi investors are confident about the crypto market’s good potential both before and after the BTC halving event, which occurs in around ten days.
Expected CPI statistics for today
Crypto is not the only market that has suffered big losses ahead of the CPI report. The Dow Jones Industrial Average remained steady, while the tech-heavy Nasdaq Composite rose nearly 0.3%. On the other side, the S&P 500 gained more than 0.1%.
Boeing shares slid up to 2.5% on Tuesday. This follows a New York Times story that the Federal Aviation Administration is looking into safety allegations made by a Boeing whistleblower.
Crypto and conventional Wall Street investors are sceptical that the Fed will deliver on the three rate cuts it has planned for 2024. This comes on the heels of continued signs of growth in the US economy.
The current dollar’s performance has heightened interest in the March CPI report. It is worth noting that any indication that inflation has begun to fall again would be interpreted as an invitation for a June policy move.
Despite the numerous losses and market winters, receding rate-cut optimism have helped drive the 10-year Treasury yield to 5-month highs. What more? Analysts predict today’s CPI data to reveal that core prices increased 3.7% year on year.
The predicted figure represents a deceleration from the 3.8% gain observed two months before in February. Monthly core price increases are predicted to be 0.3%, less than the 0.4% rises seen in January and February.