Despite the increased price volatility of crypto assets after the Bitcoin halving, the top tokens consistently show neutral sentiment on their respective charts, indicating uncertainty in the future path of the market.
The recent freefall caused by Bitcoin's decline has resulted in massive liquidations totaling over $157 million within the past 24 hours. Bitcoin’s price decline from its recent highs has caused an even bigger decline across the crypto market, impacting larger altcoins.
Bitcoin’s intraday low of $62,389 was its lowest in more than a week and contributed to negative sentiment in the market. Moreover, it has been trading in the range of $61,025 to $73,754 since early March, indicating weak price action for BTC price.
Altcoin Avalanche: Shiba Inu, Solana, let's dive!
This downward pressure spread to other cryptocurrencies, with many experiencing losses ranging from 2% to 15%. In particular, Solana (SOL) and Shiba Inu fell by around 6%, while meme coins related to Solana such as Dogwifat and Bonk experienced even more significant declines, dropping by 11.80% and 13.45%, respectively.
The rapid price drop caught some investors off guard, resulting in millions of liquidations on various crypto exchanges. According to data from CoinGlass, the amount cleared was $157.29 million, with Bitcoin accounting for a significant portion of his $42.22 million.
Investors were caught off guard!
However, the crypto market slump was triggered by the release of better-than-expected inflation statistics, raising investors' concerns about the outlook for the global economy. CNBC reported that the core personal consumption expenditure (PCE) price index, which excludes food and energy, rose 2.8% year-on-year in March, the same level as February and slightly above expectations.
Fed rate hike plan
The Fed targets an inflation rate of 2%, above which core PCE has exceeded for the past three years. The Fed is closely monitoring PCE as it adjusts to changes in consumer behavior. The latest inflation report follows previous negative inflation news, leading to speculation that the Fed will keep interest rates on hold until at least the summer unless there is a significant change in the data. .
FOMC meeting is a high-stakes gamble
With the Federal Open Market Committee (FOMC) meeting just four days away, all eyes are on decisions that will soon shape monetary policy. The outcome of this important meeting is likely to impact both traditional financial markets and the crypto world in the coming months.
One thing is for sure: the next few days are going to be devastating for investors.
