What are the main reasons for the altcoin plunge?

Upcoming CPI data and FOMC meeting, the main drivers of the current market correction are the upcoming Consumer Price Index (CPI) and Wednesday's Federal Open Market Committee (FOMC) meeting. Historically, the cryptocurrency market has trended downwards before such events.

Past comments by Fed Chairman Jerome Powell have often led to significant corrections in the cryptocurrency market. For example, in the week before the first two FOMC meetings, Bitcoin prices fell by more than 10%, while altcoins fell even more, sometimes by more than 20%.

The "Roaring Cat" Effect and Its Market Impact

A key event that has affected the market is the "Roaring Kitten" event, which has depressed the prices of altcoins. The correction of GameStop last Friday led to a broader market correction, with some altcoins falling by more than 20%. In addition, the strength of the US dollar and the continued quantitative tightening (QT) have further weakened the growth case for altcoins, leading to a continued downward trend.

Will there be a rebound?

Despite the current negative market sentiment, there are signs of a rebound. Historically, markets have rebounded quickly after FOMC meetings. Ethereum has risen about 20% since these meetings, and Bitcoin has risen more than 20% since the last Fed meeting. Investors are watching the situation closely as rising U.S. government debt and weak economic data suggest a possible rate cut. Recent "Qi Luck" + Wei BTC88109 Senator Elizabeth Warren and her colleagues have sent a letter to Federal Reserve Chairman Jerome Powell urging a rate cut to ease the financial burden on Americans facing high housing and insurance costs. #山寨币季节 #rwa赛道继续强势 #RNDRUSDT #reee #MegadropLista