Here’s Why Bitcoin (BTC) And Crypto Prices Falling Today

Rupam Roy
December 13, 2023 Updated December 14, 2023
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CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
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The crypto market is grappling with a downturn trend, creating unease among investors as Bitcoin and other major cryptocurrencies witness a decline. Meanwhile, several factors might have potentially contributed to this decline, as investors are treading with a cautious eye on economic indicators and the looming Federal Reserve meeting.

So, let’s take a look at the potential factors that might have triggered the recent crypto market selloff.

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Potential Reasons For The Recent Dip

U.S. CPI Data As Fed’s Decision Looms

Investors are treading carefully as the U.S. Consumer Price Index (CPI) data reveals a cooling inflation rate of 3.1% in November. Meanwhile, the latest data also showed that on a monthly basis, the inflation rose 0.1%, while the core CPI surged 4% on an annual basis.

Despite this dip, anticipation grows ahead of the Fed’s meeting starting today, December 13, as the inflation remained above the Federal Reserve’s 2% target range. Now, the market eagerly awaits insights into the Fed’s stance on potential rate hikes, a decision with far-reaching implications for global financial markets, including cryptocurrencies.

While the CME FedWatch Tool showed that there are 98.2% chance of the Fed keeping the interest rate unchanged at their upcoming gathering, the investors seem to be waiting on the sideline before putting any further bets. In addition, the rate-cut decisions by the central bank are also something that the market eagerly anticipates.

Profit Booking and Economic Health

Another factor contributing to the market’s recent slump could be profit booking by investors seizing recent gains from the notable rally in the crypto market. Notably, Bitcoin, Ethereum, and other major cryptocurrencies reached yearly highs in the past weeks, as the risk-bet appetite of the investors grew due to the absence of any negative catalysts in the market.

In addition, the market participants seem to be seeking clarity on the nation’s economic health, with the U.S. Producer Price Index (PPI) data set to be released later today. This key economic indicator may influence market sentiment as investors weigh their bets in the digital asset space.

In a climate where uncertainty prevails, market participants closely monitor these developments, understanding that each piece of data has the potential to sway the crypto market either way.

Also Read: BTC, Pepe Coin Loses Momentum As FET Advances

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How’s Bitcoin & Other Cryptos Performing?

The global crypto market has been staying in the negative territory through the week, as evidenced by the recent performances of the market. Meanwhile, the global crypto market cap was down 1.71% and stayed at $1.54 trillion as of writing, while the total market volume fell 11.94% to $70.76 billion.

Notably, the recent slump in the digital asset space could be attributed to the losses noted in the major cryptos BTC, ETH, SOL, and others. As of writing, the Bitcoin price plummeted 1.12% to $41,030.94, while the Ethereum price slipped 2.1% to $2,173.15.

On the other hand, the XRP price plunged 2.04% to $0.6064, with its trading volume declining 10.6% to $1.51 billion. Simultaneously, the Solana price decreased by 6.02% to $66.17 at the same time.

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What’s Next?

As the cryptocurrency market faces a recent downturn, investors are now eagerly speculating on the factors that could shape its immediate future. The crypto landscape hinges on pivotal events, each with the potential to sway market sentiment.

The Federal Reserve’s upcoming decision holds the key to the crypto market’s fate. A dovish stance may spark a rebound from the recent slump, while a hawkish approach could extend the ongoing market selloff. Investors keenly await insights from the Fed, recognizing its influence on the broader financial landscape.

Simultaneously, the speculations surrounding the approval of a Bitcoin Spot ETF loom large, with potential approval likely triggering a massive rally. On the other hand, the eagerly anticipated Bitcoin Halving event could also catalyze a bullish run, and market watchers predict the possibility of Bitcoin reaching a new all-time high following that.

Also Read: Decentralized Exchange OKX Suffers Major Hack Losing $400K, Exchange Initiates Action

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Rupam is a seasoned professional with three years of experience in the financial market, where he has developed a reputation as a meticulous research analyst and insightful journalist. He thrives on exploring the dynamic nuances of the financial landscape. Currently serving as a sub-editor at Coingape, Rupam's expertise extends beyond conventional boundaries. His role involves breaking stories, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting insightful economic news. Rupam's career is characterized by a deep passion for unraveling the complexities of finance and delivering impactful stories that resonate with a diverse audience.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.