The cryptocurrency market is currently experiencing selling pressure, with Bitcoin, the leading digital currency, plunging below the $62,000 threshold. This downturn has left approximately 5.1 million Bitcoin addresses in a precarious position, potentially exposing them to losses.
Data from IntoTheBlock reveals that roughly 10% of total Bitcoin addresses purchased BTC above $62,000 and the all-time high (ATH) of $72,500. At the time of IntoTheBlock’s post, Bitcoin was trading above $62,000, specifically around $62,540.
As of the latest update, Bitcoin has declined by 1.34% in the past 24 hours, settling at $61,931. This mirrors the broader fall in the cryptocurrency market ahead of significant data releases.
Investor sentiment in the cryptocurrency market dipped slightly on Tuesday as anticipation mounted for fresh inflation data and insights from Federal Reserve policymakers. The release of the April producer price index (PPI), a gauge of wholesale inflation, is scheduled for Tuesday. Economists surveyed by Dow Jones predict a 0.3% increase from the previous month.
This marks the first of two major inflation releases slated for the week, with the consumer price index (CPI) for April scheduled for Wednesday. Economists anticipate a year-on-year rise of 3.4% and a monthly increase of 0.4%, according to a Dow Jones survey.
The interpretation of these statistics could significantly impact investor sentiment regarding potential rate cuts this year. If the CPI and PPI data indicate a decrease in inflation, the likelihood of a rate reduction may increase, and vice versa.
Additionally, market participants are eagerly awaiting insights from more Federal Reserve officials, including Chair Jerome Powell, scheduled to speak this week, in hopes of gaining clarity on the future path of monetary policy.
Despite the prevailing market uncertainty, there is a glimmer of positivity as digital asset investment products saw $130 million in inflows for the first time in five weeks. Bitcoin, in particular, attracted $144 million in inflows, signaling a rebound from a lackluster performance earlier in the month. However, the predominant sentiment in the market appears to be one of indecision, as investors await further developments.
