Bitcoin quickly dropped from $62,400 to a low of $60,302. Although it has now rebounded to around $61,000, it still fell 2.09% in the past 24 hours, which made many investors nervous and worried.
Interestingly, despite the short-term volatility in the market, several market makers deposited a large amount of stablecoins into major exchanges in the past 24 hours, totaling $100 million. These capital inflows may indicate that the market is about to rebound. For example, Wintermute deposited 42 million USDT, Animoca deposited 16.75 million USDT, and Flow_Traders deposited 34.12 million USDC, which shows that the market still has certain financial support, which may mitigate the risk of further decline.
According to the analysis of the on-chain data platform Glassnode, despite the recent correction of Bitcoin, the overall market structure is still in line with the trend of the historical bull market. Compared with previous bull markets, this retracement is relatively small, and the market demand is still strong, so it can also be well supported when it falls. This shows that despite the volatility, the market's resilience remains strong.
The release of US CPI data tonight is a key factor affecting the market. Previous non-farm payrolls data have shown that the labor market is performing well. If tonight's CPI data shows that inflation is effectively controlled, it may inject a new wave of upward momentum into the cryptocurrency market. However, if inflation rebounds, it may cause the Federal Reserve to cancel its interest rate cut plan next month, which will bring new downward pressure on the cryptocurrency market. Therefore, tonight's CPI data will be the focus of investors' close attention, and the future direction of the market will also depend on the performance of these economic data.
