Bitcoin And Altcoins Fall Alongside US Stocks As May CPI Data Awaits
Bitcoin once again loses the $30,000 mark as Wall Street opens showing a correlation with equities.
US stocks fell sharply on Thursday (June 9) ahead of an important inflation report, amid investor concerns about the state of the US economy. Ending the session, the Dow Jones Industrial Average fell 638 points (or 1.94%) to 32,272 points. The S&P 500 lost 2.38% to 4,017, and the Nasdaq Composite dropped 2.75% to 11,754 points.
US stocks fell sharply before the release of the May CPI report today. Investors are looking to see if inflation has peaked or if the US Federal Reserve (Fed) will need to be more aggressive to cool down.
Investors have been assessing the health of the economy in recent weeks, as the Fed began raising interest rates in an effort to cool inflation without pushing the economy into recession.
As the S&P 500 opens with modest losses, Bitcoin risks fall lower. BTC/USDT has remained in a tight range until June 8, followed by bouts of volatility, which could pose a danger to long and short traders.
Analyst Van de Poppe predicts that the US jobless claims data will have little impact on the market, with the main event in the form of May CPI data, not going to beat the April numbers, which comes after data from Europe suggested that inflation had slowed.
Meanwhile, trader Pentoshi predicts that Bitcoin could rally as high as $35,000 before entering the next major correction phase, again based on stock market movements.
The overall sentiment, currently low in the indices, is one that disappoints seasoned market professionals.
Bitcoin has been focused on the $30,000 mark since May 9, its surrounding corridor is broken only in the immediate aftermath of the Terra LUNA explosion.
Meanwhile, altcoins are having mixed reactions for the day but still, most of the top 10 coins are in the red. The bright spot in the current top 100 and XTZ and THETA have the same 8% return, followed by LINK and HNT with a 6% gain. Meanwhile, Ethereum is still hovering in the $1,800 range and down 1% over the past 24 hours.
The Bitcoin Fear & Greed Index, although up 2 points to 13 from yesterday’s 11 mark, is still in the “Extreme Fear” zone.
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