Bitcoin's price hit a low of $57,000 following the release of US CPI data, impacting the broader cryptocurrency market including major cryptocurrencies like Ethereum, Solana, and Cardano.
Bitcoin Price Crash
After the release of US Consumer Price Index (CPI) data, Bitcoin's price fell to $57,000. This also caused a decline in other major cryptocurrencies such as Ethereum, Solana, and Cardano.
Analysts' Predictions
Market analysts like Alex Kuptsikevich of FxPro predict that Bitcoin's price could fall to $55,000 in the near term. However, they believe a recovery is possible, potentially leading to a price rally of up to $66,000, especially if data supports the Fed's easing of monetary policy.
Market Reaction Impact
The Bitcoin sell-off continued despite positive reactions from NASDAQ and S&P 500 to CPI data, reflecting the crypto market's increasing sensitivity to US economic indicators as investors often prefer stability over riskier assets in uncertain times. Meanwhile, FED members are making statements in favor of interest rate cuts, with the market expecting a 25 basis point rate cut in September and some anticipating a surprise 50 basis point cut.
The drop in Bitcoin's price to $57,000 has significantly impacted the broader cryptocurrency market. Despite this, forecasts suggest a potential recovery if the Fed eases its monetary policy.
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