The bears have regained dominance over the cryptocurrency market as the assets have begun trading in the red again, especially the altcoins. This negative sentiment has pulled down the global crypto market cap by 1.59% over the last 24hrs and is now positioned at $919.47 billion.
The market crash is led by Bitcoin, the star cryptocurrency, which has lost its crucial support area of $19,200 and is trading at $19,067 with a fall of 1.34% over the last 24hrs, while Ethereum has fallen by 2.41% in the last 24hrs as it is trading at $1,280.
Altcoins Crash
Ripple’s XRP, which spiked with the speculations of Ripple winning the case against the US Securities and Exchange Commission (SEC), has lost more than 6% over the last day and is trading at $0.48.
Cardano and Solana have given out more than 5% and 4%, respectively. The bears have also ravaged the meme currencies like Dogecoin and Shiba Inu which have lost 2% and beyond 5%, respectively.
Chainlink, a major target for the bears, has also plunged by 3.74% in the last 24hrs and is trading at $7.19.
Among all the altcoins, the one which has seen the highest crash in its price is Ethereum Classic as ETC has dipped by 8.8% in the previous day, and is now trading around $23.
The Highly-Anticipated CPI Data
Despite the market instability, it isn’t common to witness such intense price crashes- which leads to the question: Why did the altcoins dip to this extent?
The main reason is the macroeconomic conditions formed by the Federal Reserve. The crypto market is eagerly waiting for the release of the CPI for September, which is scheduled to be released on Thursday, Oct 13. The Consumer Price Index (CPI) informs us of the inflation rate for a particular time frame.
Meanwhile, the Producer Price Index is also set to be released by the end of this month as the Fed remains hawkish to curb the increasing inflation. If the upcoming CPI and PPI data turn out to be worse, there are high chances that the Fed will hike the interest rate by 100 bps again.