Crypto market looks bearish ahead of CPI report, BTC at $60k

The cryptocurrency market is showing signs of a potential correction ahead of the U.S. Consumer Price Index report release. The global crypto market capitalization has dropped 3.3% in the past 24 hours, now standing at $2.22 trillion, according to CoinGecko. Trading volume across the market has fluctuated between $80 billion and $87 billion as bearish sentiment prevails.

Bitcoin has fallen below $61,000 and is currently trading at $60,800, having briefly reached an intraday low of $60,300 earlier today.

According to data from Santiment, whale transactions involving at least $100,000 in Bitcoin have decreased from 10,098 to 8,176 in the past day. This decline in whale activity often indicates market uncertainty or a selloff among retail traders.

Interestingly, the BTC funding rate has surged from 0.004% to 0.007% over the last 24 hours, suggesting that bullish bets on Bitcoin’s price movement are gaining traction. However, a dip below the $60,000 threshold could lead to increased liquidations and further corrections.

Currently, Bitcoin’s Relative Strength Index (RSI) stands at 45, indicating that BTC is in a neutral zone ahead of today’s U.S. CPI report. The CPI for August was recorded at 2.5%, a level not seen since March 2021, and is anticipated to drop to 2.3%. This decrease could raise the likelihood of another rate cut during the Federal Open Markets Committee meeting on November 6 and 7.

Last week, a strong U.S. jobs report contributed to Bitcoin’s rise above $64,000. If inflation continues to cool, it could foster bullish momentum across financial markets, including cryptocurrency.