Overview

The beginning of this week witnessed a downturn in the cryptocurrency market, with leading coins signaling bearish trends. Bitcoin slid below the $68,000 mark, while Ethereum displayed a bearish outlook by trading under $3,600.

This negative sentiment prevailed as investors eagerly awaited two significant events: the release of crucial economic data and the forthcoming Federal Open Market Committee (FOMC) meeting scheduled for June 12.

Bitcoin Spot ETFs Report Outflows

Recent data shared by Wu Blockchain revealed that Bitcoin spot Exchange-Traded Funds (ETFs) experienced a net outflow of $64.9318 million on June 10. This marked the first net outflow after 19 consecutive days of inflows. Notably, the Grayscale ETF GBTC saw a massive outflow of $39.5366 million, while the Bitwise ETF BITB and BlackRock ETF IBIT recorded inflows of $7.5910 million and $6.3433 million, respectively.

Institutional Interest in Cryptocurrency

Despite the market's current downturn, there is a growing trend of large institutions and companies seeking exposure to cryptocurrencies. Analyst Yoddha highlighted this phenomenon, advising investors to disregard influencers predicting the end of the rally and to exercise patience amidst market fluctuations.

Impact of Economic Events on Crypto Markets

The performance of the crypto market in the ensuing days is likely to be influenced by the upcoming Consumer Price Index (CPI) report and the FOMC meeting. Analyst Michaël van de Poppe noted a common pattern where crypto markets often experience significant corrections preceding Fed meetings.

Market anticipations suggest CPI inflation of 3.4% and core CPI of 3.5%. Investors are keenly observing the Fed's interest rate decision, with expectations leaning towards the maintenance of rates within the 525 to 550 basis points range.

Emerging Meme Coin: Milei Moneda

A new meme coin named Milei Moneda, inspired by the political and economic ideologies of Argentine president Javier Milei, has emerged. This coin aligns with Milei's libertarian and pro-Bitcoin views and is currently available at an enticing low presale price.

Market Response to CPI Data

Crypto analyst Markus Thielen provided insights into potential market reactions based on CPI data. A CPI below 3.3% could prompt a Bitcoin breakout attempt, while a higher CPI of 3.5% or above might lead to a correction in the following weeks. Despite these scenarios, Thielen remains optimistic about Bitcoin's upward potential.

These forthcoming economic events, particularly the CPI data release, hold significant sway over the short-term direction of Bitcoin and other cryptocurrencies, impacting the likelihood of a breakout or correction in the market.