The cryptocurrency market experienced a significant downturn on Friday, March 15th. Bitcoin, the leading cryptocurrency, took a tumble of 7.4%, dropping below $68,000 to settle at $67,712. This price decline is attributed to a combination of factors:
-
Higher-Than-Expected U.S. Inflation: Inflation data released in the United States came in hotter than anticipated. This data dampened investor enthusiasm for potential interest rate cuts by the Federal Reserve. Investors were previously expecting the Fed to cut rates soon, which would have potentially boosted the crypto market.
-
Profit-Taking: With Bitcoin reaching new highs recently, some investors may have decided to cash in on their profits, contributing to the price drop.
The decline wasn’t limited to Bitcoin. Ethereum, the second-largest cryptocurrency, also witnessed a significant drop of over 7%, falling to $3,685. The broader cryptocurrency market capitalization also felt the sting, shrinking by 6.15% to roughly $2.6 trillion within a 24-hour period.
Other popular cryptocurrencies like BNB, XRP, Cardano, Dogecoin, Shiba Inu, and Polygon also experienced price drops ranging from 5.6% to 11.7%.
Experts offered their insights into the market movement. The CoinDCX Research Team believes a combination of slightly negative inflation data, profit-taking, and a “sell the news” event surrounding the Ethereum Dencun upgrade contributed to the bearish trend.
Shivam Thakral, CEO of BuyUcoin, pointed to the higher-than-expected Producer Price Index (PPI) data released by the Fed as a potential reason for the decline. This data suggests the Fed might not consider an interest rate cut at their May meeting, leading some investors to pull out.
This information is not legal advice. Do your own research before making any decisions. Only invest what you can afford to lose and seek independent financial advice if needed. Understand the risks involved before purchasing any cryptoasset