The post Why the Crypto Market is Down 20% & Bitcoin 5% This Week appeared on BitcoinEthereumNews.com.

The past week has witnessed significant downturns in the cryptocurrency market, with overall valuations sliding by 20% and Bitcoin by 5%. This shift occurred amid macroeconomic data and global financial indicators contributing to the bearish sentiment. Crypto Market Reaction to Macroeconomic Indicators Crypto-analyst on Michael van de Poppe has explained the situation that is happening in the market and said that, despite the 20% drop in the total market capitalization, things in the market are not as bad as they seem. As pointed out by van de Poppe, this correction could be forming a ‘higher low,’ which means that the overall bullish trend is still intact. A “higher low” is a bullish signal that indicates that the market could be regaining its mojo even after a retracement. This pattern can signal that investors are still optimistic about the future, buying into the market at these lower prices in anticipation of future gains. Recent data releases which have provided a rather mixed picture of the economic environment have been cited as the reason for this market trend. The Consumer Price Index (CPI), a key indicator used by the Federal Reserve in policy-making, rose by 3.3%, close to the expected 3.4%. Likewise, the Core CPI, which strips out food and energy, was at 3.4%, slightly lower than the projected 3.5%. These figures indicate a slowing down of the inflation rates, which is generally good for risk-on assets such as cryptocurrencies, as they can lead to a reduction in interest rates. In addition, the Producer Price Index (PPI) also reflected this trend with the overall figure standing at 2.2% against the expected 2.5%. The core PPI year over year was at 2.3%, lower than the expected 2.4%. Monthly figures also contracted, which is something that should normally bolster market confidence and the crypto…

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Filed under: News - @ June 16, 2024 4:20 am