Why the Crypto Market is Down Today

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After hitting $62,649 Bitcoin BTC’s price fell by more than 4.7% to around $58,385. This drop follows the U.S. Bureau of Labor Statistics report showing a 0.2% increase in inflation for July. The global crypto market cap has also decreased by 2.62% to $2.08 trillion. Here’s why the Crypto market is down today.

Market Reaction to CPI Data

The recent dip in Bitcoin’s price coincided with the release of July’s Consumer Price Index (CPI) data, which showed a 2.9% year-over-year increase. This rate was lower than expected and marked the lowest inflation rate since 2021. 

The CPI data has raised speculation about potential interest rate cuts by the Federal Reserve, which could affect market dynamics.

US Government Transfer $10K BTC

Apart from this, the U.S. government transferred 10,000 Bitcoin, worth approximately $591 million, to Coinbase Prime. This transfer, recorded under the wallet name “US Government: Silk Road DOJ,” follows a previous $2 billion Bitcoin transfer in July.

The large movement of funds has raised concerns about potential market impact and the possibility of a significant sell-off.

Largest Single Day $1B USDT Withdrawal

Adding to the market’s uncertainty, over $1 billion worth of Tether’s USDT stablecoin was withdrawn from crypto exchanges, the highest single-day amount since May. 

This large-scale withdrawal suggests that investors might be shifting funds to safer storage options, possibly in response to expected market volatility.

Bitcoin To Fall $55K 

Looking at the current market condition renowned crypto trader Roman highlights that Bitcoin’s current price behavior is not showing the strength needed for a continued upward trend. The low trading volume combined with rising prices suggests a bearish scenario. 

According to Roman, Bitcoin could hit $58K and dip to $55K before considering any long positions.