On the eve of the release of CPI data, the cryptocurrency market plummeted! Billions of assets evaporated in an instant! Is it the mysterious driving force behind the plunge?

Yesterday, the cryptocurrency market experienced a wave of declines, which attracted widespread attention from the market. According to data, the total market value of cryptocurrencies fell by 3.70% to $2.59 trillion on April 9, and the cryptocurrency derivatives market also suffered a heavy blow, with a liquidation amount of up to $250 million. This fluctuation not only made investors uneasy, but also reflected the market's sensitivity to the upcoming US Consumer Price Index (CPI) report.

In this wave of declines, Bitcoin, the largest cryptocurrency by market value, led the decline, falling 4.12% in 24 hours to about $68,941. At the same time, Ethereum, the second largest cryptocurrency, was not spared, falling 4.63% during the same period, and its price slipped to $3,508. Such price fluctuations have undoubtedly exacerbated market tensions.

So, what exactly caused the decline in the cryptocurrency market? We can interpret it from multiple dimensions.

First, the CPI data to be released in the United States has become the focus of the market. Before the data was released, investors generally expected the index to be higher than expected, which triggered market concerns about inflation. CPI is a key indicator for measuring price changes in a basket of goods and services, and is of great reference value for the Fed's monetary policy formulation. Therefore, changes in CPI data often directly affect investors' decisions, and then have an impact on financial markets.

In this case, traders are anxiously waiting for the release of CPI data. They know that this data is not only related to the inflation level, but also likely to affect the Fed's interest rate adjustment decision. If the CPI data is higher than expected, it may mean rising inflationary pressure, which will increase the pressure on the Fed to raise interest rates, thereby putting pressure on risky assets. On the contrary, if the CPI data is lower than expected, it may ease the market's inflation concerns and provide some support for risky assets.

In addition to CPI data, there are other macroeconomic events that are also affecting the cryptocurrency market. For example, the Producer Price Index (PPI), the number of initial jobless claims, and the ECB's interest rate decisions.Changes in these events may have a direct or indirect impact on the cryptocurrency market.

Against this backdrop, the volatility of the cryptocurrency market is not difficult to understand. Investors tend to act cautiously when faced with uncertainty. This cautious sentiment led to risk aversion in the market before the release of the CPI data, which triggered the decline in the cryptocurrency market.

In addition, liquidation in the futures market is also an important reason for the decline in the cryptocurrency market. When bullish traders are caught off guard by falling prices, long liquidations occur quickly. In the past 24 hours, more than $242.87 million of long positions in the entire cryptocurrency market have been liquidated. This large-scale liquidation not only exacerbated the market's downward trend, but also further hit investor confidence.

It is worth mentioning that the outflow of spot Bitcoin ETFs has also turned negative. This shows that investors' risk appetite for the cryptocurrency market is declining. In uncertain or bearish market conditions, investors may prefer to hold cash or invest in more traditional and less volatile assets. This phenomenon of capital outflow has undoubtedly put further pressure on the cryptocurrency market.

However, despite many unfavorable factors, the cryptocurrency market still has its unique charm. The approaching Bitcoin halving event has made market participants still optimistic about the upside potential of the crypto market. Bitcoin halving is a mechanism to reduce the supply of Bitcoin by reducing mining rewards, which is seen as a long-term support for Bitcoin prices. Therefore, although the market may fluctuate in the short term due to various factors, the cryptocurrency market still has broad room for development in the long run.

In summary, the decline in the cryptocurrency market is the result of the combined effect of multiple factors. From the release of macroeconomic data to the liquidation of the futures market to the outflow of funds from the spot Bitcoin ETF, these factors are intertwined and jointly affect the market trend. #大盘走势 #BTC大饼减半，