$PEPE $BTC #BinanceAlphaAlert #CPIWatch #The free fall in cryptocurrency prices on the Binance platform is attributed to several reasons, according to expert analysis. Here are some main reasons:
- Geopolitical tensions and shifts in opinion in the US presidential election: Cryptocurrency analyst Miles Deutscher noted that these tensions and shifts in opinion in the US presidential election race have led to market volatility.
- The decoupling of the Japanese yen: The decoupling of the Japanese yen may have contributed to the decline in cryptocurrency prices, as the asset added unprecedented gains of 10% in less than 30 days in parallel with the US dollar.
- Unemployment data in the United States: The unemployment rate rose to 4.3% in July, an increase of 0.2% from June, raising fears of accelerating recession.
- The impact of the Mt. Gox compensation distribution: The impact of the Mt. Gox compensation distribution may be one of the factors affecting the market, as its full effect has not been seen yet.
- The sale of positions by Jump Crypto: It is said that the major trading company Jump Crypto is selling its positions, which may affect the market.
- Rising inflation in the United States: The Producer Price Index rose by 0.9% in one month, which may delay emergency interest rate cuts by the US Federal Reserve.
- Decrease in open interest: Open interest in meme coin futures has decreased by about $350 million, indicating that traders are closing positions.
Affected currencies:
- Bitcoin (BTC): The price of Bitcoin has fallen to $117,352.00, with a decrease of 1.3% in one day.
- Ethereum (ETH): No updated information is available on the price of Ethereum, but it is known that other major cryptocurrencies have maintained their strength despite the declines.
- Meme coins: Meme coins have declined sharply, with PEPE, Floki, and Shiba Inu losing between 7.5% and 11%.
What does this mean?
The decline in cryptocurrency prices indicates that traders are exercising more caution, and meme coins are the first to suffer due to rising inflation in the United States. This trend may continue until better news regarding inflation or interest rate cuts is reported.