Cryptocurrency markets experienced a turbulent session yesterday as U.S inflation data caused a sharp selloff amongst major digital assets. On Wednesday, the U.S Bureau of Labour Statistics reported that the consumer price index for April had fallen to 4.9%, a figure which was lower than the 5% that many had been expecting. As a result of the news, Bitcoin (BTC) dropped below the $27,000 mark, though it has since recovered and is currently trading at $27,494.24. Notably, this is still a considerable plunge from the earlier high of $28,322.69 and has brought the cryptocurrency to its weakest point since the 28th of March. Ethereum (ETH) also took a hit, falling under the $1,800 level, its weakest since 26th April. Both BTC and ETH saw a notable movement in their relative strength index (RSI) as the data broke; RSI measure the velocity and magnitude of price changes in a given asset, and the breakouts indicated a bearish sentiment in the market. ETH's RSI fell below 45.00 while BTC's dropped to a floor at 43.00. The situation appears to be improving, however, as ETH is now tracking at 43.93 and BTC tracking at 41.91, which may signal a reversal in the current downturn. It is unclear as to what effect the CPI data will have on cryptocurrency markets in the near future, but it is certain that the sudden drop has caused a shakeup amongst major digital assets.



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