What is the Cause of the Crypto Bloodbath as Most of the Top 20 Cryptocurrencies Suffer DoubleDigit Losses
Bitcoin has experienced a slight decline, with many altcoins facing significant losses as the largest cryptocurrency struggles to break through the $70k level. While both Bitcoin and Ethereum have seen losses of 5-7%, numerous altcoins have plummeted by double digits. BNB, Solana, and Dogecoin have suffered losses ranging from 12-15%, with Shiba Inu, Avalanche, Polkadot, Chainlink, and NEAR Protocol also experiencing significant drops.
The upcoming release of the Consumer Price Index (CPI) report is expected to impact the crypto markets, as it has historically done. The anticipation of this report may be causing some hesitancy in the market. Concurrently, the Federal Open Market Committee (FOMC) meeting is underway, with discussions on economic projections taking place.
While no changes in interest rates are anticipated, the meeting is still likely to affect market sentiment. Officials are expected to maintain interest rates at their current levels, but the new inflation data could lead to revisions in their predictions for the number of rate cuts throughout the year.
Despite the recent downturn, institutional and corporate interest in crypto remains strong, driven by the success of Bitcoin spot ETFs. This interest extends to other major cryptocurrencies, including Ethereum and other established players in the market.
Analyst Crypto Rus has suggested that Bitcoin’s current period of choppiness and consolidation mirrors the pre-surge conditions seen before the cryptocurrency skyrocketed from $1,000 to $20,000 in 2017. He predicts that once a breakout occurs, Bitcoin could see significant upward movement, possibly reaching $300,000 to $400,000.
Although ETH recently dropped from $3,900 to $3,500, it is forming a bull flag according to Crypto Rus. With Ethereum ETFs on the horizon, substantial investment is expected, potentially driving ETH prices higher and benefiting the entire market.
Tags: Altcoins, Bitcoin, Crypto News, Cryptocurrency, Price Analysis