The crypto market experienced another decline as U.S. stock markets opened, with Bitcoin dropping below $56,000. This trend reflects a broader risk-off sentiment among American investors.
Bitcoin Drops After Brief Surge
During the Asian and European trading sessions, Bitcoin climbed from its overnight low of $56,000 to briefly touch $57,000, following the release of the U.S. CPI inflation report. However, after the U.S. markets opened, Bitcoin quickly tumbled to $55,600. While the price has since bounced back slightly, Bitcoin is still down 2% over the past 24 hours.
Altcoins Also See Declines
The broader crypto market, followed a similar downward trend, dropping over 2%. Major altcoins like Solana (SOL), Avalanche (AVAX), and AI-related tokens Near (NEAR) and Render (RNDR) saw losses between 4%-7%.
U.S. Markets Influence Crypto Trends
For the past several weeks, Bitcoin and other cryptocurrencies have followed a pattern of declining as U.S. markets open, reflecting growing caution among American investors. The S&P 500 and Nasdaq 100 also started the day lower, down 1.6% and 1.3%, respectively.
Japanese Yen Adds Pressure
One factor possibly contributing to the market volatility is the Japanese yen‘s overnight rise. The yen’s value climbed to 141 to the U.S. dollar, higher than its August levels. This increase may have triggered a reversal in yen-carry trades, contributing to the recent selloff in both traditional and crypto markets.