Crypto Markets Eye Fed and Inflation Trend

It is important to note that the total crypto market cap had climbed back above $3.38 trillion before the release of the PPI numbers, fueled by optimism around easing inflation. Despite this, Bitcoin’s price still declined.

At the time of writing, Bitcoin has dropped 1.86% over the past 24 hours and is now trading for $101,734. Altcoins like Ethereum [NC] and XRP $2.22 have also dropped 3.51% and 5.94%, respectively.

This price outlook shows the cautious market mood before the data was released. It is worth noting that Bitcoin faced selling pressure before the data release.

Crypto analyst Doctor Profit noted that Bitcoin price may be approaching a local bottom, with the MVRV indicator suggesting a potential range between $68,000 and $74,000.

However, with CPI and PPI showing consistent declines, crypto investors are watching for a potential digital asset market rebound. If the lower inflation continues, cryptocurrency may benefit from looser financial conditions in the months ahead.