Fluctuations in the Crypto Market as Bitcoin Drops Below $61,000 Amid U.S. CPI Data Findings

Cryptonews Sophia Klein October 11, 2024

Fluctuations in the Crypto Market as Bitcoin Drops Below $61,000 Amid U.S. CPI Data Findings

Bitcoin slipped to $60,576 following higher-than-expected U.S. CPI data, impacting the crypto market on October 11. Most altcoins experienced mixed results, with Ether showing a gain of approximately one percent, while others like Binance Coin and Solana faced losses. The overall cryptocurrency market valuation currently stands at $2.12 trillion, reflecting under one percent loss over the past 24 hours.

On October 11, the cryptocurrency market experienced notable fluctuations following the release of the U.S. Consumer Price Index (CPI) data, which was higher than anticipated. Bitcoin, the leading cryptocurrency, saw a decline of approximately one percent, trading at $60,576 (approximately ₹50.8 lakh) globally, while on Indian exchanges, it was listed at $61,452 (approximately ₹51.6 lakh), according to CoinMarketCap. The CoinSwitch Markets Desk reported, “As Bitcoin had its fourth consecutive red day, the world’s largest crypto gained over two percent just before the daily candle close. The market volatility yesterday was largely driven by US CPI data, a key indicator for determining the Fed’s stance on future rate cuts. While the annual CPI showed a decline compared to last year, it came in higher than analysts’ expectations, leading to a drop in Bitcoin prices.” In contrast, Ether recorded a modest price increase of just above one percent, with its value standing at $2,407 (approximately ₹2,02,145) on international exchanges and $2,438 (approximately ₹2.04 lakh) on Indian exchanges.

The U.S. Consumer Price Index is a significant economic indicator that reflects inflationary trends and affects monetary policy decisions, particularly those made by the Federal Reserve regarding interest rates. Higher-than-expected CPI data can influence investor sentiment across various markets, including cryptocurrency, resulting in noticeable volatility. The performance of altcoins fluctuated significantly, with some reporting gains while others, including major cryptocurrencies like Binance Coin and Solana, faced losses. Overall, retail investor engagement with cryptocurrencies appears to be robust, even amidst market uncertainties.

In summary, Bitcoin’s decline aligns with the impact of higher-than-expected U.S. inflation data, contributing to a volatile trading environment within the cryptocurrency sphere. While Bitcoin faced losses, certain altcoins experienced gains, reflecting diverse market dynamics. Retail interest in cryptocurrencies remains strong, highlighting continued engagement from investors despite the inherent risks of the market.

Original Source: www.gadgets360.com