The market capitalization of crypto market decreases by 2.17% in the last 24 hours, standing at 1.37 billion Dollars after he Bitcoin (BTC) will experience a decrease close to 3% during the day, placing slightly above US $ 36,000. Also, the Ethereum (ETH) loses almost 4% in the last 24 hours, falling below $2,000.
These changes are triggered shortly after the publication of the latest US CPI reading, surprising the market with a decrease greater than expected. Specifically, the general rate falls to 3.2% in October compared to the scheduled 3.3%, while the underlying inflation is moderate up to 4% from the previous 4.1%, exceeding the expectations of a stagnation.
In the decline in digital assets, traditional markets experience a remarkable rebound after these data. Analysts suggest that the Federal Reserve (FED) could have completed its rate increase cycle and could begin to reduce them at the beginning of next year.
Although there is still no comforting reading of inflation, cryptocurrency market experts observe weakening in the labor market and a slowdown in economic growth as consumers moderate their spending.
Oxford Economics strategists indicate that “Inflation still has a journey margin” and that “it will be a long time before the Fed lowers interest rates.”
Despite the recent fall, cryptocurrency market observers believe that lower inflation and decreased bond yields could support digital assets prices. According to Grayscale experts, “the recovery of cryptocurrency assessments can continue whether real interest rates reach their maximum point and if we continue to see progress towards the approval of the quoted funds (ETF) in the US market.”
Bitcoin: What data does the crypto market expect
This Friday is the deadline for the Bag and Securities Commission (SEC) approve or reject the ETFs proposed by Hashdex and Franklim Templeton.
Although there has been an increase in optimism in recent weeks, there is the possibility that the regulator chooses to delay its decision again and approve the funds together with the rest of ETF in early January. “In this scenario, the impulse is likely to be reduced in cryptocurrency markets, since we will probably have to wait several weeks to obtain significant news related to the ETFs,” they point out from K33 Research.
Rania Gule, Market Analyst of XS.com, highlights that the recent price drop is related to a wave of mass liquidations in the market, made by the well -known “whales”, the great holders of Bitcoin. “Bitcoin’s great transfers are usually accompanied by benefits, which leads to a downward correction in the price of BTC, however, the bullish trend and the strong signs of the technical indicators continue,” she explains.
In other market assets, falls among the main ‘altcoins’ are observed. XRP loses almost 5%, while Solana (Sun) surprises with a rebound of around 7%.
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