The cryptocurrency market is now in fairly a fall. Bitcoin (BTC) regained the $122,000 mark yesterday, a number of inches away from hitting a brand new all-time excessive. The asset was unable to achieve a brand new peak and confronted a correction to a worth stage of $118,000. World crypto market capitalization has immersed 2.4% to $4.05 trillion within the final 24 hours.
Why is the cryptocurrency market falling?
The most recent decline within the cryptocurrency market may very well be attributable to July Shopper Worth Index (CPI) knowledge scheduled for the second half of in the present day on August 12, 2025. Together with crypto markets, the US inventory market registered a loss on Monday, August 11, 2025.
Based on specialists cited by CNBC, there may very well be a 0.2% improve monthly, and a 2.8% improve per yr. Core CPI is predicted to rise by 0.3% monthly and three.1% per yr. Core CPI numbers exclude unstable numbers from meals, cigarettes and vitality.
CPI knowledge is predicted to have disastrous penalties for the cryptocurrency market. A better vary of CPI knowledge could result in additional modifications. Excessive CPI numbers may result in the Federal Reserve taking the Hawkish stance on the subsequent assembly. CPI knowledge is simply earlier than the Federal Reserve Jackson Gap Convention held on August twenty first. The assembly could set the muse for the September assembly.
Many specialists count on rate of interest cuts in September. Goldman Sachs, Wells Fargo and Citigroup are forecasting rate of interest cuts of 25 foundation factors. The CME FedWatch device reveals an 84.4% probability of a 25 foundation level rate of interest discount in September. Fee reductions may result in the cryptocurrency market experiencing a better inflow.
Nonetheless, if the Federal Reserve shouldn’t be positive about financial progress, they will resolve to not change rates of interest in September. Such developments may result in additional worth drops.
