U.Today – The cryptocurrency market is currently under selling pressure, with , the largest digital coin, falling below the $62,000 mark. This downturn has placed approximately 5.1 million Bitcoin addresses in a precarious position, potentially at risk of losses.
According to data from IntoTheBlock, 5.1 million Bitcoin addresses, approximately 10% of total addresses, purchased BTC above $62,000 and the ATH of $72,500. Bitcoin was trading above $62,000, around $62,540, at the time of IntoTheBlock's publication.
At the time of writing, BTC was down 1.34% in the last 24 hours to $61,931, reflecting the decline in the cryptocurrency market ahead of the release of key data.
The cryptocurrency market fell slightly on Tuesday as investors awaited new inflation data and watched comments from Federal Reserve policymakers, looking for signs on the future direction of monetary policy.
April's producer price index, which measures wholesale inflation, will be released on Tuesday. The Dow Jones surveyed economists, who predict that the PPI will grow 0.3% compared to last month.
This is the first of two major inflation releases scheduled for the week, with the April Consumer Price Index due out on Wednesday. According to a Dow Jones survey, economists expect it to increase 3.4% year-on-year and 0.4% month-on-month.
The statistics could influence investors' views on when and how many rate cuts will occur this year; If the CPI and PPI indicate that inflation is declining, the prospects for a rate cut may increase, and vice versa.
More Federal Reserve officials, including Chairman Jerome Powell, are scheduled to speak this week, potentially providing new insights into the outlook for monetary policy.
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On a more positive note, digital asset investment products recorded inflows of $130 million for the first time in five weeks. Bitcoin received $144 million in inflows, returning from a dismal month so far. However, the predominant sentiment in the market seems to be indecision.
This article was originally published on U.Today.
