Breaking Crypto News – Relationship Between FOMC Rates and Crypto Down Today
Breaking Crypto News – Prior to the FOMC and CPI statistics being announced on Wednesday, Bitcoin was declining. The outcomes are anticipated to influence the short- to medium-term price analysis projection for Bitcoin. Cryptocurrency prices don’t always climb or fall. Price action is clearly cyclical, as the chart makes clear.
Following Q1 2024’s expansion, prices fell in April when the late March impetus dissipated. This persisted until the middle of May, at which point Bitcoin plummeted to $56,500 before rising and surpassing $70,000 but falling short of $72,000. The bears are back in the picture again.
Liquidation Waves in Perpetual Markets
As of this writing, Bitcoin has been down around 5% over the past day and is down almost 10% from its peak. With its weight and significance in the cryptocurrency space, contraction has dragged altcoins down in a cascading manner. It is noteworthy that a wave of liquidation has spread throughout Binance and OKX’s perpetual markets in response to the drop in Bitcoin prices. More than 83,000 traders’ leveraged Bitcoin positions totaling more than $189 million were closed, according to Coinglass. $147 million, a significant amount, is staked on prices to keep growing.
FAQ
Does FOMC Affect BTC?
Since Bitcoin is viewed as an investment instrument like stocks or bonds, pronouncements about the FOMC and the macroeconomy can have a big impact on it.
What is the CPI Inflation Rate for 2024?
According to data from the U.S. Bureau of Labor Statistics, the seasonally adjusted Consumer Price Index (CPI) increased by 0.3% in April but was flat in May. The year-over-year core reading, which does not include energy and food, decreased to 3.4% from 3.6% last month.
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