US’ Inflation Fall is Affecting Bitcoin and Ethereum
Cryptocurrencies yesterday saw a decrease in value due to waning investor interest. This was further emphasized by data which indicated a decline in US consumer inflation, which made Bitcoin less attractive.
At the time of writing, BTC was trading at around $30,000, with a capitalization of about $593.000 billion. Ethereum (ETH) dropped by 1% to $1,800, whereas Binance Coin (BNB) had the most substantial loss this week, showing a 3% decrease to about $240.
Of the top ten altcoins, Solana (SOL) and Polygon (MATIC) showed some improvement, both growing 12% to $22.34 and $0.762 respectively.
Analysts at Bloomberg highlighted the correlation between Bitcoin and the Nasdaq 100 index being at its lowest levels since 2020, with the US stock market now being the main beneficiary of the data on lower inflation; increasing steadily on Wednesday and reaching further gains today.
John Toro, head of the Independent Reserve’s digital asset trading division, predicted a decrease in Bitcoin; noting that US government-associated wallets have begun transferring their BTC to exchanges, which could lead to a drop to $28,000.
