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Cryptocurrency News Articles
Bitcoin, Ethereum, Dogecoin Dip As Wholesale Prices Breach Estimates: Analyst Explores Possibilities Of A Bitcoin Jump To $68K — TradingView News
May 15, 2024 at 09:56 am
Major cryptocurrencies experienced a downturn on Tuesday, with Bitcoin falling below $62,000 after higher-than-anticipated inflation data for wholesale prices in April. The market's negative sentiment led to significant liquidations, with Bitcoin accounting for a substantial portion. The derivatives market followed suit, with traders opting for short positions.
Cryptocurrency Market Plummets After Inflation Data Raises Interest Rate Hike Specter
Major cryptocurrencies tumbled on Tuesday after the release of higher-than-expected wholesale inflation data for the previous month, triggering concerns about an imminent interest rate hike by the Federal Reserve.
Bitcoin's Descent and Market Liquidations
Bitcoin, the world's largest cryptocurrency, retreated below $62,000, unable to sustain its recent gains. The market downturn led to a staggering $144 million in liquidations within 24 hours, with long liquidations accounting for a hefty $114 million. Bitcoin topped the liquidation list, with $39.5 million liquidated.
Derivative Sentiment Sours
The price drop significantly impacted the derivatives market, with traders betting against Bitcoin prices sharply increasing in the past 24 hours. This negative sentiment stemmed from the U.S. Bureau of Labor Statistics' report of a 0.5% increase in wholesale prices in April, exceeding analysts' estimates and dampening hopes of an interest rate cut by the Federal Reserve.
Overall Market Performance
The global cryptocurrency market cap declined by 2.12% within 24 hours, reaching $2.24 trillion. In contrast, the equities market exhibited a positive trend, with the Dow Jones Industrial Average, S&P 500, and tech-heavy Nasdaq Composite all closing in the green.
Analyst Perspectives
On-chain analytics firm Santiment detected increasing bearish sentiment towards large-cap cryptocurrencies, as they failed to exhibit a strong recovery. The firm also attributed the recent downtime experienced by Coinbase to fueling market uncertainty. However, Santiment emphasized that rising negativity could potentially serve as a catalyst for a market recovery.
Technical analyst Kevin identified a falling wedge pattern for Bitcoin, suggesting that "BTC is currently compressed between a ton of support and resistance and it's gonna pop one way or the other within days." He predicted that an upward breakout could push the coin towards $68,400, while a downward breakout could result in a drop to $50,000–$52,000.
Conclusion
The release of higher-than-expected inflation data has cast a shadow over the cryptocurrency market, raising concerns about an impending interest rate hike. Major cryptocurrencies, including Bitcoin, have experienced a decline in value, reflecting the broader market sentiment. While analysts remain divided on the future direction of the market, the negative sentiment and potential for a rate hike could continue to weigh on cryptocurrency prices in the short to medium term. Investors are advised to exercise caution and closely monitor the situation to make informed investment decisions.
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
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