BTC Dips Below $62K Ahead of U.S. Inflation Figures
By Kapil Rajyaguru
Bitcoin fell below $62,000 during the Asian morning trade on Wednesday, losing about 1.63% over 24 hours. Ether declined more than 2% to just above $2,900, while solana was largely unchanged at $145. In the next 24 hours, attention will turn to inflation reports out of the U.S.
The latest Producer Price Index (PPI) is set for release today and the Consumer Price Index (CPI) is due tomorrow. Stubbornly high inflation has previously put paid to hopes of rate cuts in the U.S., which can have the effect of a handbrake on risk assets such as crypto.
On-chain data indicates that long-term holders are not selling their bitcoins (BTC) but have been holding onto them for the past two weeks. Analysts said this cohort of investors’ recent activity reflects their strategic positioning for potential entry points at market lows.
These developments come as mining difficulty declined by 6%, its largest decrease since December 2022. The difficulty measures how many hashes must be generated to validate a Bitcoin block and automatically adjusts every two weeks or 2,016 blocks. The reduction in mining difficulty indicates that the number of Bitcoin miners has declined, and it is less challenging to validate new blocks.
The rally in GameStop (GME) stock has prompted a surge in meme coins PEPE, FLOKI and MOG, all jumped as much as 30% in the last 24 hours, suggesting traders may be preempting a repeat of the DOGE rally in 2021 which occurred following GME’s surge.
The global crypto market cap is $2.25T, a 1.83% decrease over the last day. The total crypto market volume over the last 24 hours is $74.92B, which makes a 2.52% increase. The total volume in DeFi is currently $5.89B, 7.86% of the total crypto market 24-hour volume. The volume of all stable coins is now $70.17B, which is 93.66% of the total crypto market 24-hour volume. Bitcoin’s dominance is currently 54.01%, an increase of 0.08% over the day.
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