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Crypto Prices Plunge: Bitcoin Falls 4% to $58,000 Following CPI Report

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Crypto Prices Plunge: Bitcoin Falls 4% to $58,000 Following CPI Report

Crypto Prices Plunge: Bitcoin Falls Below $58,000 Amid U.S. CPI Release

Crypto Prices Plunge – Bitcoin (BTC) has fallen more than 4% to approximately $58,000, leading to a broader decline in the cryptocurrency market. This drop follows the release of the latest U.S. Consumer Price Index (CPI) data for July, despite positive reactions from the stock market. Major cryptocurrencies such as Ethereum (ETH), Solana (SOL), Cardano (ADA), Binance Coin (BNB), and Ripple (XRP) experienced smaller losses, ranging from 2.5% to 3.8%.

U.S. CPI Data Impacts Crypto Market

The cryptocurrency market saw a notable downturn after the U.S. CPI data was released late Wednesday. July’s CPI increased by 2.9% year-on-year, meeting market expectations and marking the first time since 2021 that it has fallen below 3%. Despite a rebound in the NASDAQ and S&P 500 stock indices, which ended the day positively, Bitcoin continued its sell-off following the CPI announcement. According to K33 Research, crypto prices have been highly sensitive to U.S. economic data in recent months, with investors prioritizing stability over riskier assets.

Bitcoin Price Analysis

In the past 24 hours, Bitcoin’s price dropped significantly, trading near the $58,000 level during the Asian afternoon on Thursday. This decline has erased nearly all of the gains Bitcoin made over the past week. As Bitcoin led the losses, other major tokens followed suit, with Ether falling by 3.8%, and Solana, Cardano, Binance Coin, and Ripple seeing smaller declines of around 2.5%. The CoinDesk 20 index, which tracks the largest tokens by market capitalization, lost 3.5%.

ETFs and Investment Flows

In the ETF market, U.S.-listed spot Bitcoin ETFs recorded net outflows of $81 million on Wednesday, ending a positive streak of two days. Grayscale’s GBTC experienced the largest outflow, with $56 million, followed by Fidelity’s FBTC with $18 million. Ark Invest’s ARKB and Bitwise’s BITB saw outflows of $6.7 million and $5.7 million, respectively.

On a positive note, Franklin Templeton’s EZBC and BlackRock’s IBIT were the only products with net inflows, totaling $6 million. Conversely, Ether ETFs performed better, with $10 million in net inflows, extending their positive streak to three days. BlackRock’s ETHA recorded $16 million in inflows, while Grayscale’s ETHE experienced a $16 million outflow. Additionally, Grayscale’s mini Ether trust (ETH), Fidelity’s FETH, and Bitwise’s ETHW saw a combined total of $11 million in inflows.

Market Outlook

Market analysts, including Alex Kuptsikevich of FxPro, suggest that the prevailing scenario is one of continued sell-off momentum, with a potential pullback to $55,000 for Bitcoin. However, if the Federal Reserve signals imminent easing of monetary policy, it could potentially encourage a rebound to $66,000. Traders and investors will be closely monitoring these developments and market trends to gauge the future direction of cryptocurrency prices.

The crypto market remains volatile and sensitive to economic indicators, with recent events underscoring the need for careful market analysis and strategic investment decisions.

Crypto Prices Plunge: Bitcoin Falls 4% to $58,000 Following CPI Report

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