Following the latest economic data, crypto markets have adopted a negative outlook.
The Bureau of Labor Statistics in the United States announced early today that inflation for the year jumped from 2.4% to 0.2% and was up by 0.2% during September. This exceeded market expectations.
Global investors were attracted by the FOMC Minutes and the US job numbers, which showed a low level of optimism. Crypto enthusiasts are worried about the possibility of a Fed hawkish outlook during the next meeting, as well as Bitcoin’s imminent plunge below $60,000.
The digital asset space has been impacted by these developments.
In the last 24 hours, global crypto market capitalization fell by 2.70% to $2.11 billion.
Bitcoin fell 2.69% from its 60,314 low to $60,662 on the daily chart.
Zilliqa and Yearn Finance have all seen significant price drops. Worldcoin has also experienced a steep decline.
The crypto market was dominated by sellers over the last day. Zilliqa, Yearn Finance, and Worldcoin, an AI token, all lost significant amounts of money.
Bitcoin is also expected to continue its downward trend, as it aims for the $58,000 level of reliable support.
US CPI, FOMC minutes sink cryptocurrencies
Bitcoin dropped below $62,500 on Wednesday, and it was able to reach the $63,000 area. After the Federal Reserve published September’s FOMC minutes, digital assets began to fall.
Recent US CPI figures have added downward pressure and reinforced bets that the Fed will make a hawkish comment at their next conference.
The September United States Consumer Price Index was 0.2%.
Inflation fell 2.4% over the past year, surpassing market expectations of 2.3%.
The past month has seen a slight increase since the beginning of February 2021, despite higher than expected numbers.
Some predicted that Bitcoin would fall below $60.000.
The latest inflation figures have likely dampened investor confidence, causing them to be less inclined towards risky assets.
Bitcoin supporters will be watching the support level of $60,000, which prevented the early October drops.
The 200-day moving median at $63,500 could be reached by maintaining this range.
If the bearish trend continues, the next barrier of support could be at $58,000.
Ali Martinez’s technical analysis supports the negative outlook on Bitcoin. Ali Martinez revealed that Bitcoin, the leading crypto currency, was trapped in a downward pattern.
#Bitcoin remains stuck in a descending parallel channel. We might be seeing a fall to $58,000, or the lower limit at $52,000 after the rejection of the upper boundary. The bullish breakout will not happen until $BTC passes $66,000.
Martinez called out the mid-point of the BTC setup at $58,000, and its bottom border at $52,000.
A shift to bullish bias would allow the digital coin to break out of its declining channel and reach above $66,000.
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