- The dip in Bitcoin’s price came after the producer price index (PPI) rose more than expected in the month of February.
- The overall cryptocurrency market dropped 2.8% in the last 24 hours to below $2.6 trillion.
- CoinGlass data showed nearly $300 million in leveraged trades were wiped out over the past day, with long positions worth $222 million accounting for the majority.
Bitcoin (BTC) dropped below $72,000 for the first time this week on Wednesday morning after the apex cryptocurrency had logged eight straight days of gains.
The drop came after the producer price index (PPI) rose 0.7% in February, higher than economists' 0.3% forecast. The inflation gauge tracks the change in wholesale prices.
Bitcoin’s price slipped 2.3% in the last 24 hours to $71,990 from an intraday high of nearly $75,000. On Stocktwits, retail sentiment around the apex cryptocurrency remained in ‘bullish’ territory over the past day amid ‘normal’ levels of chatter.
Bitcoin Breaks 8-Day Gains Streak
According to Glassnode data, this was the first time in over two years that Bitcoin saw daily gains stretch for more than eight days, with the last such streak occurring in October 2023.
Ethereum (ETH) led losses among the top 10 cryptocurrencies by market capitalization, followed by Solana (SOL) and Cardano (ADA). Ethereum’s price fell 4.4% in the last 24 hours to around $2,200, while Solana’s price dropped 4.2% to $90 and Cardano’s price slid 3.8% to around $0.275.
Crypto Stocks Drop Alongside Bitcoin
Equity markets also dipped in morning trade on Wednesday. The SPDR S&P 500 ETF (SPY) fell 0.68%, the SPDR Dow Jones Industrial Average ETF (DIA) slipped 0.91%, and the Nasdaq-100 tracking Invesco QQQ Trust (QQQ) moved 0.61% lower. Retail sentiment around QQQ on Stocktwits fell to ‘extremely bearish’ from ‘bearish’ territory over the past day.
Michael Saylor-backed Strategy (MSTR), the biggest corporate holder of Bitcoin, saw its shares plummet over 5%. Retail sentiment around MSTR’s stock dipped to ‘bullish’ from ‘extremely bullish’ over the past day, while chatter remained at ‘high’ levels.
Bitmine Immersion Technologies (BMNR) also took a hit of over 5% in morning trade. Retail sentiment around the Tom Lee-backed Ethereum digital asset treasury remained in ‘extremely bullish’ territory over the past day, with chatter clocking ‘extremely high’ levels.
The Federal Open Market Committee (FOMC) is scheduled to announce its outlook on rate cuts later in the day, with analysts anticipating it could lead to higher volatility.
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