Bitcoin experienced a significant decline of 7.4% to $67,712 during Friday’s trading session, following unexpectedly high U.S. inflation data. This development dampened expectations regarding the Federal Reserve’s interest rate adjustments, leading to profit-taking activities in the cryptocurrency market. In tandem, Ethereum, the second-largest cryptocurrency, also saw a sharp drop of over 7% to $3,685. Consequently, the global cryptocurrency market cap witnessed a decline of 6.15%, reaching approximately $2.6 trillion within the last 24 hours.
Various other prominent cryptocurrencies, including BNB (-5.6%), XRP (-7%), Cardano (-5%), Dogecoin (-11%), Shiba Inu (-11.7%), and Polygon (8.2%), also experienced declines during this period.
Experts attribute this bearish trend to slightly negative Consumer Price Index (CPI) and Producer Price Index (PPI) data, combined with profit-taking activities. Additionally, the rollout of the Dencun upgrade for Ethereum may have triggered a “sell the event” scenario, further contributing to the downturn.
Shivam Thakral, CEO of BuyUcoin, suggested that this price movement could be linked to the recent announcement of a 0.6% increase in the Producer Price Index (PPI) by the Federal Reserve. This indicates that the Fed may not consider an interest rate cut during the upcoming May meeting.
Data from CoinMarketCap reveals that the total cryptocurrency market volume surged by 34.89% to $184.12 billion over the last 24 hours. Stablecoins accounted for a significant portion, reaching $165.86 billion, which constitutes 90.08% of the total crypto market volume.
Bitcoin’s market capitalization decreased to $1.33 trillion during this period, with its dominance standing at 51.58%. Notably, Bitcoin’s trading volume surged by 51% to $72.5 billion over the last 24 hours.
Technical indicators for Bitcoin suggest a bearish outlook, with the hourly MACD showing momentum in the bearish zone. The hourly Relative Strength Index (RSI) for BTC/USD has also dropped below the critical 50 level. Analysts have identified key support levels at $68,500 and $67,000, while resistance levels are observed at $70,500, $72,000, and $73,000, according to Rajagopal Menon, Vice President of WazirX.
Related posts:
SFC Raises Concerns Over Bybit Amid Licensing Questions
