The crypto market has worn a bearish outlook ahead of the United States Consumer Price Index report set to be released soon.
At the time of this report, Bitcoin the flagship crypto asset is at $60,800 while other Altcoins are down in the red zone as well.
The global crypto market capitalization declined by 3.3% in the past 24 hours sitting at $2.2 trillion according to coin gecko data.
The global market trading volume has been hovering between $80 billion to $87 billion as the bears continue to show dominance.
Bitcoin as a result of the downturn plunged below the $61,000 mark and is currently trading at $60,800 at press time. The flagship crypto asset has dropped to a lower point today trading at $60,300 at a certain time of the day.
Declining Whale Activity
One of the attributes of the bearish trend in the market is a drop in whale activity. Data revealed by the Santiment showed that whale transactions consisting of at least $100,000 worth of BTC declined from 10,098 to 8,176 over the past day. A Decline in whale activity usually hints at market uncertainty or selloff from retail traders.
Despite the decline in whale activity, The BTC funding rates painted a positive picture for the asset. The BTC funding rate surged from 0.004% to 0.007% over the past 24 hours.
This data implies that the number of bets on Bitcoin’s price movement is mostly bullish. However, if the asset drops below $60,000 it could lead to massive liquidations and a further correction.
The Relative Strength Index another key metric showed that Bitcoin’s Relative Strength Index is currently at 45 . This shows that BTC is currently at a neutral zone ahead of the U.S. CPI report, scheduled for today.
CPI Results to be announced Today
The US consumer Price Index for August was 2.5% a multi year level never seen since March 2021. The CPI this month is expected to drop to 2.3% Increasing the chances of another rate cut at the Federal Open Markets Committee meeting on Nov. 6 and 7.
What to Know
- The last bullish cycle in the crypto market was inspired by the U.S. jobs report, which sent the BTC price above $64,000. If the U.S. inflation cools down again, bullish momentum would be expected in financial markets, including crypto.
- The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a representative basket of consumer goods and services. The CPI measures inflation as experienced by consumers in their day-to-day living expenses.
