In recent market actions, Cardano (ADA) and Dogecoin (DOGE) have taken the lead in crypto losses, following profit-takings from traders who hit significant previous highs. As Bitcoin (BTC) fell below crucial support levels, overarching macroeconomic pressures intensified.

Key Insights

• Bitcoin and Ether declined as traders took profits amid macroeconomic pressures and high leverage.
• Bitcoin’s price dropped below key trendlines, raising concerns about a potential market correction.
• U.S. inflation data has tempered expectations for imminent rate cuts, adversely affecting cryptocurrency market sentiment.

Tug of war Image Caption: Tug of war. (Shutterstock)

Bitcoin has recently slipped below vital support levels, creating nervousness among traders. Alex Kuptsikevich, chief market analyst at FxPro, remarked, “Bitcoin fell to $114,700, rolling back to levels seen two weeks ago.” This trend could indicate a broader market correction potentially dipping towards $100,000.

Market Sentiment

Both Bitcoin and Ether experienced losses of over 1.5% and 1.8% respectively within a short timeframe. Dogecoin fell to $0.2220, reflecting a 5.10% drop. Meanwhile, Cardano’s ADA fell sharply by 6.6%, leading today’s declines.

The market has transformed quickly, with heightened concerns linked to U.S. inflation data affecting future policy expectations. Joel Kruger from LMAX Group emphasized, “Sentiment has been mostly steered lower by hotter-than-expected U.S. inflation data.”

Furthermore, even as the market shows volatility, institutional interest appears steady, with increased ETF flows and allocations towards ETH. Ryan Lee from Bitget noted that current leverage levels in derivatives could cause significant market swings as momentum shifts.

Traders now await the upcoming speeches and announcements from economic leaders, which may further influence market dynamics alongside the ongoing crypto-correction debate.