With Bitcoin, the largest digital currency, falling below $62,000, the cryptocurrency market is presently under selling pressure. About 5.1 million Bitcoin addresses are now in a risky situation as a result of this decline, perhaps putting them at danger of losses.
5.1 million Bitcoin addresses, or around 10% of all addresses, purchased BTC over $62,000 and the all-time high of $72,500, according to IntoTheBlock statistics. The price of bitcoin was above $62,000 at the time of IntoTheBlock’s article, or around $62,540.
https://x.com/intotheblock/status/1789941619187233173
As of this writing, BTC had dropped 1.34% to $61,931 during the previous 24 hours, reflecting the decline in the cryptocurrency market before important data releases.
Tuesday’s modest decline in the price of cryptocurrencies was caused by investors waiting for new inflation statistics and listening to remarks made by Federal Reserve officials in an attempt to decipher clues on the direction of monetary policy going forward.
On Tuesday, the producer price index for April—a gauge of wholesale inflation—will be released. According to a Dow Jones poll of economists, the PPI will increase by 0.3% over the previous month.
This is the first of two significant inflation reports that are expected this week; on Wednesday, the consumer price index for April is expected. In a Dow Jones survey, analysts predict a 3.4% annual increase and a 0.4% monthly increase.
Investor perceptions of the timing and number of rate cuts this year may be influenced by the statistics; if the PPI and CPI show declining inflation, then there may be a greater likelihood of rate reductions, and vice versa.
This week’s programme of speeches by other Fed members, including Chair Jerome Powell, might offer fresh perspectives on the direction of monetary policy.
Positively, for the first time in five weeks, $130 million was infused into digital asset investment products. Inflows into Bitcoin were $144 million, rebounding after a very poor month thus far. However, the prevailing emotion in the market seems to be hesitation.
