The cryptocurrency market experienced a downturn as investors awaited the release of the U.S. Consumer Price Index (CPI) report, while stock markets closed with gains.
CoinGecko data revealed a 2.1% decline in the global crypto market cap over the past 24 hours, settling at $2.72 trillion. Additionally, daily trading volume dropped by 3% to around $112 billion.
Leading cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) saw slight decreases following a brief bullish period on April 9. BTC slipped by 2.6%, trading at $68,900, while ETH recorded a 3.3% fall to $3,510.
The market’s red condition preceded the release of the U.S. CPI data for March 2024, scheduled for April 10. Speculation regarding a potential interest rate cut in June increased, particularly if the CPI data aligns with projections.
Ryan Lee, the chief analyst at Bitget, noted that while inflation remains below the Federal Reserve’s preferred level of around 2%, the current readings show improvement compared to March 2023. The expected CPI rate for March is 3.4%, up from 3.2% in February.
Lee suggested that the improved CPI figures could fuel speculation about a rate cut from the current 5.25%-5.5% bank fund rate as early as June. He emphasized the potential market volatility and uncertainty surrounding the Fed’s decisions, urging investors to trust in the long-term outcome.
In contrast, the stock market closed positively on April 9, with the S&P 500 gaining 0.14% to reach 5,209.91 points.
Typically, financial markets experience heightened nervousness before the release of CPI data, especially when higher inflation rates are anticipated. This anticipation often leads to market fluctuations as investors await the outcome of the report.
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