Bitcoin and Ether's Struggles

The cryptocurrency market remains subdued as the U.S. dollar strengthens ahead of a key inflation report from the Federal Reserve. Bitcoin (BTC) was trading just above $61,000, recovering slightly from an overnight low of $60,400, but still reflecting a decline of over 1.5% in the past 24 hours. Ether (ETH) mirrored this trend, down approximately 1.9% at $2,395.

Analysts suggest that the rising dollar may be influencing the crypto market dynamics. With expectations for a hotter-than-anticipated inflation report, the stakes are high for the Federal Reserve's upcoming interest rate decisions. Traders believe that outcomes deviating significantly from expectations could incite market volatility.

The dollar index, which compares the currency against a basket of others, has climbed to 102.97, indicating a market shift and potential for further adjustments in the financial landscape.

Alex Kuptsikevich, a senior market analyst at FxPro, noted that "the appreciation of the dollar and heightened bond appeal are diminishing Bitcoin's institutional allure."

As the report is due today at 12:30 UTC, inflation expectations are set at 0.1% month-on-month growth and 2.3% year-on-year, with the core CPI forecasted at 0.2% month-on-month. Any surprises in these figures may enhance the calls against interest rate cuts, increasing risk aversion among investors.

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For further detailed insights, refer to the complete article on CoinDesk.