What is Causing the Decline in the Crypto Market Today?
Altcoin Avalanche: Shiba Inu, Solana Take a Dive!
This downward pressure extended to other cryptocurrencies, with many experiencing losses ranging from 2% to 15%. Notably, Solana (SOL) and Shiba Inu suffered approximately 6% declines, while meme coins associated with Solana, such as Dogwifhat and Bonk, experienced even steeper losses, falling by 11.80% and 13.45%, respectively.
Investors Caught Off Guard!
However, the downturn in the cryptocurrency market happened with the release of higher-than-expected inflation data, raising investor concerns about the global economy’s outlook. CNBC reported that the core personal consumption expenditures (PCE) price index, excluding food and energy, grew 2.8% year on year in March, matching February and slightly exceeding expectations.
Fed’s Plan for Rate Hike
The Federal Reserve targets 2% inflation, a threshold that the core PCE has exceeded for the past three years. The Fed closely monitors the PCE because it adjusts for changes in consumer behavior. This latest inflation report follows previous negative inflation news, prompting speculation that the Fed may maintain interest rates unchanged until at least the summer unless there are significant changes in the data.
High Stakes at FOMC Meet
With the Federal Open Market Committee (FOMC) meeting just four days away, all eyes are on the decisions that will shape monetary policy soon. The outcomes of this crucial gathering could impact both conventional financial markets and the cryptocurrency world in the months ahead.
One thing’s for sure: the next few days will be catastrophic for investors.
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