Key Points
- The global cryptocurrency market is showing signs of a potential correction.
- Bitcoin’s value dropped below $61,000, with whale activity and the BTC funding rate indicating market uncertainty.
The global cryptocurrency market appears to be on the verge of a correction, just hours before the release of the U.S. Consumer Price Index report.
The total value of the global crypto market has decreased by 3.3% in the last 24 hours, currently standing at $2.22 trillion. This data comes from CoinGecko, and it also reveals that the total trading volume for the market has fluctuated between $80 billion and $87 billion, indicating a bearish trend.
Bitcoin’s Performance
Bitcoin, the leading cryptocurrency, has seen its value drop below $61,000, and it is currently trading at $60,800. Earlier today, it even reached an intraday low of $60,300.
Santiment data shows that Bitcoin whale transactions, which involve at least $100,000 worth of BTC, have decreased from 10,098 to 8,176 in the past day. This drop in whale activity often suggests that the market is uncertain or that retail traders are selling off.
Furthermore, the BTC funding rate has seen a significant increase, going from 0.004% to 0.007% in the last 24 hours. This indicator suggests that most bets on Bitcoin’s price movement are bullish. However, if Bitcoin’s value falls below the $60,000 mark, it could lead to more liquidations and potentially a further correction.
Market Indicators and Predictions
According to Santiment, Bitcoin’s Relative Strength Index is currently at 45. This shows that Bitcoin is in a neutral zone ahead of the U.S. CPI report, which is scheduled for release today.
The U.S. CPI for August was 2.5%, a level that hasn’t been seen since March 2021, and it is expected to drop to 2.3%. This could increase the likelihood of another rate cut at the Federal Open Markets Committee meeting on November 6 and 7.
Last week, one of the positive catalysts for Bitcoin was the U.S. jobs report, which pushed the price of BTC above $64,000. If U.S. inflation cools down again, it could create bullish momentum in financial markets, including the cryptocurrency market.