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The cryptocurrency market is currently under selling pressure, with Bitcoin, the biggest digital currency, dropping below the $62,000 mark. This downturn has placed approximately 5.1 million Bitcoin addresses in a precarious position, potentially risking losses.
According to IntoTheBlock data, 5.1 million Bitcoin addresses, roughly 10% of the total addresses, bought BTC above $62,000 and the ATH of $72,500. Bitcoin traded above $62,000, around $62,540, at the time of IntoTheBlock's post.
At the time of writing, BTC was down 1.34% in the last 24 hours to $61,931 mirroring the fall in the cryptocurrency market ahead of key data releases.
The cryptocurrency market fell slightly on Tuesday as investors awaited fresh inflation data and looked to comments from Federal Reserve policymakers, looking for signals about the future path of monetary policy.
The April producer price index, which measures wholesale inflation, is coming out on Tuesday. The Dow Jones surveyed economists, who predict the PPI to grow 0.3% from last month.
Tomiwabold OlajideThis is the first of two major inflation releases scheduled for the week, with the consumer price index for April due Wednesday. According to a Dow Jones survey, economists expect it will rise 3.4% year-on-year and 0.4% monthly.
The statistics could influence investor views about when and how many rate cuts will occur this year; if the CPI and PPI indicate that inflation is decreasing, the prospects for a rate reduction may rise, and vice versa.
More Fed officials, including Chair Jerome Powell, are scheduled to speak this week, potentially providing new insights into the monetary policy outlook.
On a more positive note, digital asset investment products witnessed $130 million in inflows for the first time in five weeks. Bitcoin received $144 million in inflows, returning from a dismal month thus far. Nonetheless, the market's predominant sentiment appears to be indecision.
Yuri Molchan
Vladislav Sopov
Dan Burgin
Alex Dovbnya