Why is the crypto market down today.
The crypto market is down today as investor concerns about the upcoming Consumer Price Index report and the state of the U.S. economy lead to derisking manuevers.
The cryptocurrency market is down today, with the total market capitalization falling by 3.70% to $2.59 trillion on April 9 amid $250 million in crypto derivatives market liquidations.
Bitcoin #BTC tickers down $69,349, the largest cryptocurrency by market capitalization, led the decline by falling 4.12% to around $68,941 in the last 24 hours. Ether
ETH tickers down $3,529, the second-largest crypto, has dipped 4.63% to trade at $3,508 in the same period.
The March CPI reading is expected to see a 0.3% increase month-on-month and a 3.4% rise on a yearly basis, according to economists polled by Dow Jones. Core CPI, which excludes food and energy prices, is expected to climb by 0.3% and 3.7%, respectively.
Popular trader and analyst Daan Crypto Trades drew attention to macroeconomic events set for April 10 and 11, including CPI, PPI, Jobless claims and the ECB interest rate decision.
“The market has not been reacting a lot to these things lately, but I think they are still important to keep an eye on,” the analyst wrote.
A hotter CPI could mean a correction, while a cooler print could trigger a move higher, increasing the likelihood of a Fed rate cut in June.
The CME FedWatch Tool now sees a 42.3%
possibility of keeping the Fed funds rate unchanged in June, while chances of a rate cut are at 56.2%