Bitcoin (BTC), Dogecoin (DOGE), and the general cryptocurrency market have faced a significant correction in the last day. Bitcoin (BTC) has fallen 7.5% in the daily charts, Dogecoin (DOGE) has dropped 10.5% in the daily charts, and the cryptocurrency market cap has fallen 6.2% in the last 24 hours.
Also Read: Cryptocurrency: When Will The Market Experience Peak Bull Run? Analyst Predicts
Other assets are also following a similar pattern. Ethereum (ETH) has fallen 7.3% in 24 hours, while XRP has fallen 7.8% in the same time frame. Shiba Inu (SHIB) saw the most significant plummet among the top 20 projects, falling 12.2% in 24 hours.
Why are Bitcoin, Dogecoin, and the cryptocurrency market down today?
The latest correction could be due to the US economic data released on Thursday. US inflation for February took a turn, rising to 3.2%. The latest CPI (Consumer Price Index) data marks a change from the previous downward trend. Core CPI, excluding the volatile energy and food costs, also rose 0.3%. Higher inflation may have spooked investors. Moreover, higher inflation data will likely cause the Federal Reserve to push back on interest rate cuts.
The markets were expecting a 150 basis point rate cut in early 2024. However, the latest data does not support a rate cut just yet.
However, Bitcoin (BTC), Dogecoin, and the general cryptocurrency market may bounce back, riding the Bitcoin halving wave. Many analysts consider halvings bullish as they reduce rewards for miners, thereby reducing supply. Moreover, BTC’s latest rally was due to increased inflows into spot BTC ETF (Exchange Traded Fund) products. Spot BTC ETF inflows may increase once again as the US economy improves. Furthermore, there is a possibility that the US SEC (Securities and Exchange Commission) will approve a spot Ethereum (ETH) ETF later this year, which may further push the market.