Crypto market players' hopes of seeing the market green up have been dashed as its performance worsened. Crypto markets turned red overnight and faced massive bearish sentiment.
Bitcoin fell almost 2% in the last 24 hours while Ethereum fell over 3%. BTC is currently trading at $19,015 while ETH is at $1,280. At the same time, other crypto altcoin markets are also facing poor performance ahead of key data.
Ripple's XRP has just been seen poised to rocket higher, plunging nearly 7% in the past 24 hours. On the other hand, Cardano and Solana both continued to fall deeper. The price of Cardano fell by 6% while Solana fell almost to 4%. Chainlink which has strong fundamentals also declined due to unfavorable macroeconomic conditions. It is now trading at $7.22 after falling another 4% in the last 24 hours.
Crypto markets are struggling due to hawkish macroeconomic conditions driven by the Fed's actions. The crypto market is currently focused on the Consumer Price Index which will be released on Thursday. The CPI is a strong indicator of the level of inflation in the country. Last month, the CPI released was worse than expected. As a result, the crypto market plunged a lot.
Likewise, the Producer Price Index will also be released this month. Key officials still insist on their 'hawkish' stance. The CME Fed Watch tool currently indicates a possible interest rate hike of 75 basis points. If the CPI and PPI released are higher than expected, then the Fed can raise interest rates by up to 100 basis points.
In the past month, this phenomenon led to a further sell-off in the crypto market.
Fed officials are still hawkish. However, concerns about global financial instability are growing. The IMF will release its Global Financial Stability report. Concerns about an impending recession may result in a pivot from the Fed.
