Cryptocurrencies saw a slight decrease on Tuesday following higher-than-expected wholesale inflation data. Bitcoin fell by 2.10% to $61,719.45, while Ethereum and Dogecoin also experienced losses. The market dip led to $144 million in liquidations, with Bitcoin accounting for $39.5 million. The negative sentiment was exacerbated by a 0.5% increase in wholesale prices in April, dampening expectations of a Federal Reserve interest rate cut.
On the positive side, Ethena, Lido DAO, and UNUS SED LEO were the top gainers in the past 24 hours. The global cryptocurrency market cap decreased by 2.12% to $2.24 trillion. Meanwhile, the equities market performed well, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all seeing gains.
Despite the inflation data, investors remained cautious ahead of the release of the consumer price index data. Santiment reported rising bearish sentiment for large-cap cryptocurrencies, partly attributed to Coinbase’s recent downtime. However, the firm suggested that the negativity could contribute to a market recovery.
Technical analyst Kevin identified a falling wedge pattern for Bitcoin, predicting a potential breakout in the coming days. An upward breakout could push Bitcoin to $68,400, while a downside breakout might result in a drop to $50,000–$52,000.
Overall, the cryptocurrency market faced some challenges but also showed potential for recovery in the near future.