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The entire cryptocurrency market saw selling pressure as Bitcoin’s price fell to its lowest point in over a week. Bitcoin, the first and largest cryptocurrency by market cap, extended its declines from highs of $65,287 on April 25 into the second day, reaching intraday lows of $62,389.
The Bitcoin sell-off spurred a wave of selling in the crypto market, exacerbating the downward pressure on alternative cryptocurrencies known as “altcoins.”
At the time of writing, BTC had dropped 2.28% in the previous 24 hours to $62,839. Several cryptocurrencies were also trading in red, with losses ranging from 2% to 15%. Solana (SOL) and Shiba Inu fell about 6% in the last 24 hours, while Solana meme coins Dogwifhat and Bonk suffered worse losses, falling 11.80% and 13.45%, respectively.
The price downturn caught some investors off guard, leading to a cascade of liquidations across various cryptocurrency exchanges.
According to CoinGlass data, over $157.29 million worth of crypto assets were liquidated within the last 24 hours, with Bitcoin accounting for $42.22 million of that total.
The downturn in the cryptocurrency market coincided with the release of higher-than-expected inflation data, raising investor concerns about the global economy’s outlook.
According to CNBC, the core personal consumption expenditures (PCE) price index, excluding food and energy, grew 2.8% year on year in March, matching February and slightly exceeding expectations.
The Fed targets 2% inflation, which the core PCE has exceeded for the past three years. The Fed focuses on the PCE in particular because it compensates for changes in consumer behavior.
The report comes on the heels of bad inflation news from Thursday, and the Fed might probably keep interest rates unchanged until at least the summer, unless the data changes significantly.
With inflation still rising two years after it peaked at the highest level in more than 40 years, central bank policymakers are closely monitoring the data as they consider the next steps in monetary policy.
