Crypto on Edge Ahead of CPI Release
#CryptoCPIWatch
The crypto market is getting jittery as traders brace for today’s US CPI data release. All eyes are on the inflation numbers and what they might signal for the Fed’s next move on interest rates — and by extension, how it could ripple through crypto markets.
Bitcoin (BTC) has slipped 1.83% over the past 24 hours, currently hovering around $102,489. It had briefly touched $105,525 before dipping to a low of $101,065.
Ethereum (ETH) is also under pressure, down 2.48% at $2,453.76. It saw highs of $2,600.58 during the day but dropped to $2,425.28 at its weakest point.
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CPI Data in Focus
Markets expect the April CPI to stay flat at 2.4% year-on-year. However, alternative data from Truflation suggests inflation may actually be softer, at 1.68%.
If the official data confirms lower inflation, this could boost hopes for Fed rate cuts, potentially fueling demand for higher-risk assets like crypto and sparking bullish momentum.
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Liquidations and Risk-Off Mood
In the last 24 hours, crypto markets saw liquidations totaling $730 million — with 73% of these being long positions. This highlights how traders are trimming exposure and bracing for volatility ahead of the data.
Key Takeaways:
Expect increased volatility as markets digest the CPI numbers.
Technical support and resistance zones will be critical for short-term traders.
Traders should stay sharp, manage risk carefully, and avoid overexposure in these conditions.