Cryptocurrency investors are bracing for a potentially rocky ride due to volatile market movements this week. Bitcoin experienced a dramatic fall in price on Monday, dropping over 5% from the day before. Numerous other cryptocurrencies followed suit, with Ethereum losing 5%, Dogecoin moving down 7%, and Polygon down 8.6%. Analysts are attributing this market instability to the upcoming April Consumer Price Index (CPI) report by Fed Reserve, which provides a gauge of the success in bringing down inflation rates. Such economic data has a historical precedent of driving down risk asset prices, including cryptocurrency. Investors have turned toward Bitcoin as a safe have through the year, despite its close correlation to traditional equity markets like the U.S. tech industry. This pushed its value up considerably, from around $16,615 in January to over $27,000 at present. Going into Wednesday's CPI report, crypto investors remain cautious that further volatility is on the horizon, with global asset manager BlackRock expecting riskier assets to take a further hit this year in response to continued central bank interest rate hikes.



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