🌎 Crypto Market Faces Potential Correction Ahead of U.S. CPI Report

The cryptocurrency market is showing signs of a potential correction just hours before the release of the U.S. Consumer Price Index (CPI) report.

Global Crypto Market Cap Decline

The global crypto market capitalization has decreased by 3.3% over the past 24 hours, currently standing at $2.22 trillion. Market-wide trading volume has fluctuated between $80 billion and $87 billion, indicating a dominance of bearish sentiment.

Bitcoin Price Movement

Bitcoin (BTC) has dropped below the $61,000 mark, currently trading at $60,800. Earlier today, Bitcoin briefly hit an intraday low of $60,300, reflecting heightened market volatility.

Whale Activity and Funding Rates

Data from Santiment reveals a decline in whale transactions (transactions worth at least $100,000), dropping from 10,098 to 8,176 over the past day. This reduction in whale activity often signals market uncertainty or selling pressure from retail traders.

Interestingly, the BTC funding rate has surged from 0.004% to 0.007% in the last 24 hours. This indicates a predominantly bullish sentiment on Bitcoin’s price movement. However, a dip below the $60,000 level could trigger increased liquidations, potentially leading to further market corrections.

Relative Strength Index (RSI) and Market Sentiment

Bitcoin’s Relative Strength Index (RSI) is currently at 45, according to Santiment data. The RSI suggests that BTC is in a neutral zone ahead of the U.S. CPI report, which is scheduled for release today.

Impact of U.S. CPI Report

The U.S. CPI for August was recorded at 2.5%, a level not seen since March 2021, and is expected to drop to 2.3%. A lower CPI could increase the likelihood of another rate cut at the upcoming Federal Open Markets Committee meeting on November 6 and 7.

One of the bullish catalysts last week was the U.S. jobs report, which pushed BTC prices above $64,000. If U.S. inflation cools down again, it could bolster bullish momentum in financial markets, including cryptocurrencies.