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The crypto market adopted a bearish outlook following the recent economic figures.
Early today, the United States Bureau of Labor Statistics revealed that the yearly inflation jumped to 2.4% and up 0.2% in September, surpassing market expectations.
The cooled inflation, after the FOMC Minutes release, and the low-spirited US Job numbers attracted the attention of global investors, with crypto enthusiasts worrying about the probability of a hawkish Fed outlook in the upcoming meeting and Bitcoin’s looming plunge beneath $60,000.
These developments have catalyzed significant bearishness in the digital assets space.
The global cryptocurrency market capitalization plunged 2.70% in the past 24 hours to $2.11 trillion.
Bitcoin lost 2.69% on its daily chart to trade at $60,662 after hitting the $60,314 daily low.
The altcoin market mirrored the plunge, with Zilliqa, Yearn Finance, and Worldcoin recording notable price declines.
AI token Worldcoin lost 7.70%, Yearn Finance 2.50%, and Zilliqa 4% as sellers ruled the crypto world over the past day.
Furthermore, technical analysis suggests more dips, with Bitcoin eyeing the reliable support level at $58,000.
Source – CoinmarketcapUS CPI, FOMC minutes sink cryptocurrencies
Digital assets plummeted on Wednesday as Bitcoin lost grounds above $62,500 to explore the $63,000 vicinity. The downside came after the Federal Reserve released September’s FOMC Minutes.
The latest US CPI data added to the downward pressure, cementing bets of a possible hawkish commentary by the Fed in their upcoming conference.
September’s United States Consumer Price Index stood at 0.2%.
The inflation dipped 2.4% year-over-year, exceeding market forecasts of 2.3%.
Nevertheless, the past month saw a modest increase since February 2021 (despite the hotter-than-expected numbers).
Meanwhile, the economic data triggered debates over the potential effect on the cryptocurrency space, with some forecasting Bitcoin’s plunge below $60,000.
Nonetheless, the latest inflation data has likely weighed on investor sentiments, dampening appetite for risk assets.
Crypto enthusiasts will now watch Bitcoin’s support at $60,000 – the area that prevented early October dips.
Maintaining this zone could support upswings toward the 200-day moving average at $63,500.
However, failure to cancel the current bearish wave could call for the next support barrier at $58,000.
Technical analysis by Ali Martinez backs the bearish outlook for Bitcoin. He revealed that the bellwether crypto remained trapped within a downward channel pattern.
Martinez highlighted the setup’s mid at $58,000 and the bottom border at $52,000 as crucial support floors for BTC.
Nevertheless, a shift in bias to bullish would see the digital coin breaking out of the declining channel to above $66,000.
The post Altcoins today: Zilliqa, YFI, and Worldcoin plunge as hopes for imminent Fed rate cuts fade appeared first on Invezz
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