Crypto Takes Cautious Steps as CPI Approaches!
With the US Consumer Price Index (CPI) data scheduled to be released today, uncertainty is rising in crypto markets. Investors are closely watching how the inflation figures could affect the Federal Reserve's next move on interest rates and what this could mean for digital assets.
📉 Market Snapshot
Bitcoin (BTC) has lost 1.83% over the past day and is currently hovering around $102,489. The day's price range saw a high of $105,525 and a low near $101,065.
Ethereum (ETH) is down 2.48%, currently trading at around $2,453. It reached a peak of $2,600 and bottomed at $2,425 during the same period.
🧮 What to Expect from CPI
CPI data for April will be released today and analysts are predicting a stable inflation rate of 2.4% year-on-year. However, alternative real-time sources such as Truflation suggest that the actual figure may be closer to 1.68%.
Lower-than-estimated inflation could reignite speculation about potential rate cuts, a scenario that boosts risk appetite and demand for crypto.
💥 Massive Liquidations Hit the Market
In the last 24 hours, the crypto space witnessed liquidations in excess of $730 million. 73% of these were long positions, suggesting that traders may be deleveraging and preparing for volatility.
⚠️ What Should Traders Watch Out For?
Volatility Risk: Pre-CPI jitters trigger large liquidations; caution advised.
Key Levels: Short-term strategies may depend on support at $100k for BTC and $2,400 for ETH.
Post-Data Moves: The market's reaction to the CPI could determine the direction of the week.
Traders are urged to be vigilant and disciplined in managing exposure as macro data shakes the narrative.
