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.
- Gabrielle Cook
- 2023-05-08
Crypto Investors Bracing For Market Volatilities
Crypto investors remain cautious ahead of the April Consumer Price Index (CPI) report by Fed Reserve, as global asset manager BlackRock expects further volatility and a hit to riskier assets in response to continued central bank interest rate hikes.