Crypto Market Alert!
Key Reasons for the Crypto Market Downturn
1. Bitcoin’s Drop Below Key Support:
- Bitcoin (BTC) fell 1.6% to $101,846, losing the critical $103,100 support level. Analysts are now monitoring $101,600 as the next crucial level to sustain bullish momentum .
- The dip follows the release of U.S. CPI data, which showed April inflation at 2.3% YoY—the slowest since 2021. While low inflation hints at weakening consumer demand, it also fuels recession fears, dampening hopes for Fed rate cuts that typically boost crypto liquidity .
2. Macroeconomic Uncertainty:
- Traders are awaiting U.S. PPI data (due later on May 15) for further clues on inflation and Fed policy. Most experts expect the Fed to hold rates steady, prompting profit-taking after Bitcoin’s rally above $100K .
- Trump’s new tariffs (though not yet impacting consumer prices) add to market jitters, as trade tensions historically reduce risk appetite .
