The cryptocurrency market faced significant selling pressure, led by Bitcoin's decline to its lowest point in over a week. The downturn triggered a wave of sell-offs in altcoins, with various cryptocurrencies experiencing losses ranging from 2% to 15%. The price downturn resulted in over $157.29 million worth of crypto assets liquidated, with Bitcoin accounting for a significant portion of that total. The decline coincides with the release of higher-than-expected inflation data, raising concerns about the global economic outlook and potentially influencing future monetary policy decisions.
Cryptocurrency Market Plunges as Bitcoin Price Slumps to Week-Long Low
In a dramatic sell-off, the entire cryptocurrency market has witnessed an unprecedented surge in selling pressure, sending prices plummeting. Bitcoin, the market leader, has been at the epicenter of this decline, shedding value from its peak of $65,287 on April 25th. At the time of writing, Bitcoin has plummeted 2.28% within the past 24 hours, reaching intraday lows of $62,389.
The ripple effects of Bitcoin's sell-off have reverberated throughout the crypto market, dragging down the prices of alternative cryptocurrencies, commonly known as "altcoins." Prominent altcoins have experienced significant losses, ranging from 2% to 15%. Solana (SOL) and Shiba Inu have both endured a 6% decline in the past 24 hours. Meme coins, such as Dogwifhat and Bonk, have suffered even more severe setbacks, plummeting 11.80% and 13.45%, respectively.
The sudden price downturn has taken many investors by surprise, triggering a cascade of liquidations across cryptocurrency exchanges. Data from CoinGlass reveals that over $157.29 million worth of crypto assets have been liquidated within the last 24 hours, with Bitcoin accounting for $42.22 million of that total.
This market downturn coincides with the release of higher-than-expected inflation data, exacerbating investor concerns about the global economic outlook. According to CNBC, the core personal consumption expenditures (PCE) price index, excluding food and energy, surged 2.8% year-over-year in March, matching February's figure and slightly exceeding expectations.
The Federal Reserve targets a 2% inflation rate, which the core PCE has surpassed for the past three years. The Fed's particular focus on the PCE stems from its ability to account for changes in consumer behavior.
This inflation report follows a string of concerning economic data released on Thursday, raising fears that the Fed may maintain interest rates unchanged until summer at the earliest, assuming no significant changes in the data.
As inflation continues its upward trajectory two years after reaching its highest level in over 40 years, central bank policymakers are closely monitoring the data to determine their next steps in shaping monetary policy. The consequences of this downturn for the cryptocurrency market and the broader financial landscape remain uncertain.
