Crypto Markets dip Amid Inflation Data and Profit-Taking
The crypto market experienced a slight dip today, with the total market cap falling by 0.48% to $3.32 trillion.Bitcoin (BTC) also saw a minor decline, dropping 0.21% to $103,228.This downturn comes as traders take profits following a recent rally that pushed BTC above $100,000.
The market’s decline coincides with the release of the latest U.S. inflation figures. In April, consumer prices rose by 2.3% annually, down from 2.4% in March.
While low inflation might suggest a slowing consumer demand due to recession fears, it’s unlikely to prompt the federal Reserve to lower interest rates. this steady rate surroundings led traders to lock in profits as Bitcoin held above $100,000. Though, there are positive signs in the market, particularly with altcoins.
Over the past few weeks, altcoins have shown strong performance. The altcoin index reached its highest value since February. In the past 90 days, 36 out of the 100 altcoins have outperformed Bitcoin.
Despite the market’s slight downturn,there are signs of strength. The altcoin market cap has risen from $1.1 trillion to $1.35 trillion over the past week. This growth suggests a bullish momentum for crypto and risk assets. However, the market’s continued growth will depend on the Federal Reserve’s decisions in the coming months.
Notably, the Fed may wait until September to decide on rate cuts, observing the effects of the new U.S.-China trade agreement. For now, the crypto market remains cautiously optimistic.
