"Optimistic investors expect that the price may fall first before rising again, but..."
The cryptocurrency market plunged as the United States (US) Producer Price Index (PPI) data published yesterday saw output inflation rate in January increase by 0.7% compared to expectations of 0.4%.
In the minutes following the announcement, the stock market also saw a fall, with the Dow Jones Industrial Average plunging 0.83% while the S&P 500 and Nasdaq were down around 1.40% and 1.12% respectively.
While the total market capitalization for the entire crypto market decreased at $1.09 trillion as the price of Bitcoin (BTC) reportedly slipped by 3.18% at $23,830 in the last 24 hours after successfully surpassing $25,100.
The second largest crypto Ethereum (ETH) plunged around 30% at $1,663 while altcoins such as Dogecoin (DOGE), Cardano (ADA) including Solana (SOL) also fell by 4.32%, 4.24% and 5.14% in the past 24 hours.
It is already known that PPI is always closely monitored by market participants as a measure of wholesale inflation, which will give an impression of an increase in prices at the consumer level if prices at the producer's side are high.
In the meantime, the PPI announcement is also important for the US Federal Reserve (Fed) which is still considering the amount of interest rate increases that should be made by measuring the level of spending in the country.
