There is a cautious atmosphere in the cryptocurrency market ahead of the FOMC minutes and PCE inflation data. Bitcoin fell to $92,000, while Ethereum fell by more than 5%, and investors are more cautious about downside risks. Analysts say that inflation data could affect the possibility of a rate cut and that this will play a decisive role in the short-term direction of the market.
The FOMC minutes and October PCE inflation data to be released this week have led to a cautious stance in the crypto derivatives market. Experts emphasize that these data will provide important clues about the course of inflation and the possibility of a rate cut in December. Ethereum fell to $3,331, while Bitcoin fell below $94,323, and changes in option pricing suggest that investors are adopting a more cautious approach to downside risks.
There is a generally cautious atmosphere in the cryptocurrency market. Instead of advancing towards the $100,000 target, Bitcoin entered a consolidation period by falling below $93,000. Analyst Valentin Fournier made the following assessment: “We expect Bitcoin to find support at $95,000 and then rise.” Ethereum, on the other hand, lost more than 5 percent in the last 24 hours and fell to $3,300. According to Deribit data, the put-call ratio in Ethereum options increased to 0.74 for the end-of-November maturity, which reveals that investors are more sensitive to downside risks.
On the other hand, QCP Capital pointed out that downside risks have increased as there is no strong catalyst in the market until the end of the year.
The FOMC minutes, due today, will provide new information about the Fed’s interest rate policy and economic forecasts. Core PCE inflation data due Wednesday is expected to show a monthly increase of 0.3 percent. The CME’s FedWatch tool shows a 59.4 percent chance of a rate cut in December, while the probability of holding rates steady is at 40.6 percent.
“A below-expected inflation data could strengthen the possibility of a rate cut and support Bitcoin’s momentum,” analyst Fournier said. In light of this data, a critical week begins in determining the short-term direction for the cryptocurrency market.