Crypto Market Loses $18 Billion Amid Volatility Ahead of CPI Release

The cryptocurrency market has experienced significant turbulence in the past 24 hours, with total market capitalization declining by $18 billion to $3.91 trillion [1]. This sharp fluctuation has drawn attention to the sector’s ongoing volatility, with a $100 billion swing within a short timeframe underscoring the uncertainty gripping investor sentiment [2]. Analysts caution that rapid price movements are likely to continue in the near term, especially with the upcoming release of the U.S. Consumer Price Index (CPI) report, which could influence market behavior [3].

Bitcoin, the leading digital asset, has seen moderate price pressure despite the broader market downturn. Currently trading at $118,933, its relative strength index remains above neutral, indicating that positive momentum has not yet been fully exhausted. However, should profit-taking increase, Bitcoin’s price could fall below $117,261, signaling a potential shift in buying pressure [4]. Analysts warn that a drop to $115,000 would likely invalidate the current positive trend and initiate a more pronounced correction [5].

Among altcoins, Fartcoin has suffered the most notable decline, losing 19% of its value over the past 24 hours. Trading at $0.87, it remains just above key support levels. Technical analyses suggest that the downward trend is gaining strength, and a break below current support could push the token toward $0.80 [6]. On the other hand, a rebound above this level might trigger a short-term buying reaction, potentially pushing the price above $0.92 [7]. The BeInCrypto technical analysis team emphasized that maintaining these support levels is crucial to preventing further selling pressure [8].

The uncertainty surrounding the U.S. CPI report has played a pivotal role in shaping market sentiment. Should the report indicate inflationary pressures, volatility is expected to persist, with market capitalization potentially dropping to $3.81 trillion in a negative scenario [9]. Conversely, a favorable economic outlook could drive the total market value beyond $4 trillion [10]. Harsh Notariya, an editor at BeInCrypto, noted that investors would benefit from closely monitoring the CPI report to assess potential market implications [11].

As the market reverts to a volatile stance following brief rallies, the direction of the broader cryptocurrency landscape appears to hinge on macroeconomic data and investor behavior. Analysts advise a cautious approach, emphasizing the importance of staying informed and prepared for potential market developments [12].

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Title: Crypto Market Faces Sharp Fluctuations as Values Tumble

URL: https://coinmarketcap.com/community/articles/689ae2e2f48bf1782063a002/