Why the encryption declined today?

The encryption markets fell to the latest inflation numbers, as traders get a profit from the last market rally, which paid BTC above $ 100,000.

The profit and inflation data has pushed the encryption markets to the bottom of the day. On Tuesday, May 13, the total maximum Crypto market decreased by 0.48 % to $ 3.32 trillion, while Bitcoin (BTC) 0.21 % decreased to 103228 dollars. Nevertheless, several signs show that the markets are still strong.

The market decline coincided with the release of the latest inflation numbers in the United States, which showed the lowest rate of inflation since 2021. Consumer prices It increased at an annual rate of 2.3 %, a decrease from 2.4 % in March. Low inflation can indicate a slowdown in consumer demand due to recession fears.

As of April, the new definitions of the Trump administration have not yet been struck. However, low numbers are likely to push the federal reserve to low interest rates, despite President Donald Trump’s pressure. Low interest rates are also something in which the encryption markets hope, due to its impact on the liquidity of the market.

With interest rates that are likely to remain fixed, traders chose to achieve profits as Bitcoin was placed above $ 100,000. However, there are signs that the market is in a bullish state, especially with Altcoins.

The encryption markets remain strong

During the past few weeks, Altcoins has seen performance improvement, with Altcoin index reaching the highest value since February. In the past ninety days, 36 of 100 Altcoins has shown better than Bitcoin. What’s more, during the past week, the Altcoin market ceiling rose from $ 1.1 trillion to $ 1.35 trillion.

The strength of the altcoin market suggests the bullish momentum of encryption and risk assets in general. However, the continuous growth in the market depends on what the Federal Reserve decides in the coming months. It is worth noting that the Federal Reserve Bank may decide to wait with price discounts Until SeptemberTo know the effects of the new trade agreement between the United States and China.