#CPIWatch The possible causes of this correction in cryptocurrencies.
Among the elements that stand out as a possible cause of Tuesday's decline are the sales by large wallets. In particular, Bitcoin mining firms would have taken advantage of the high price of the token to realize profits. The rise above $120k presented itself as an unprecedented opportunity to capitalize to ease the tight margins of this industry.
At the same time, wallets from the Satoshi era continued to move funds, raising fears of a possible liquidation. For example, on Tuesday, one of these addresses made a movement of about 10,000 bitcoins and another of 7,000 coins, as reported by CoinDesk and other media.
About $2 billion in BTC would have been transferred to the exchanges Binance and Bybit. This surely caused concern among investors about a possible withdrawal by whales. According to CryptoQuant, there are no reasons to be alarmed and it emphasizes that this is a healthy correction of cryptocurrencies.
For now, we must wait for some determining events like the CPI and PPI inflation in the United States. This data will be crucial for the monetary policy decision of the Federal Reserve that will take place at the end of this month. As can be seen, the crypto market is facing a week filled with important events.
If CPI inflation declines, it is not ruled out that this could lead to a resumption of the crypto rally.