Zcash (ZEC) Dumps Below $1K, Bitcoin (BTC) Struggles at $74K After CPI Reading: Market Watch - CryptoPotato
Bitcoin (BTC) fell below $74,000 following higher-than-expected October CPI data, while Zcash (ZEC) crashed below $1,000, leading a broad cryptocurrency market decline.
The higher-than-expected CPI numbers for October triggered another major downturn for bitcoin, with the asset plunging below $73,000 to reach a near-three-month low. The broader altcoin market followed suit, with significant losses across the board as investor sentiment turned bearish.
Bitcoin's Recent Struggles
Bitcoin had experienced a brief rally following the US midterm elections, climbing from $75,600 to $81,000 as political uncertainty seemed to diminish. However, this upward momentum proved short-lived, with the so-called 'Thursday crash' driving BTC down from nearly $81,000 to $75,200. Further declines followed, with Monday's trading session pushing the cryptocurrency to $73,600.
The release of October's CPI data on Tuesday exacerbated the downward trend, causing bitcoin to crash below $73,000 for the first time since mid-August. While it has since recovered slightly, the cryptocurrency continues to struggle below the $74,000 mark, with its market cap falling below $1.5 trillion despite its dominance over altcoins increasing to 60.5%.
Zcash Leads Declines
Among the major cryptocurrencies, Zcash has suffered the most significant losses over the past 24 hours, plummeting by 13% to drop below $1,000 for the first time since early September. This sharp decline makes Zcash the worst performer in the current market downturn.
In contrast, Monero has gained 5.6%, trading above $575, while BitTorrent Token has surged by 10% to $1.08. Avalanche has added 4% and trades near $8.7. Most other large-cap altcoins remain in negative territory, with Ethereum defending the $2,000 support level but still down 1.6% to $2,055. BNB has fallen to $680, and XRP has dropped to $1.06.
The total cryptocurrency market capitalization has declined by $40 billion in a single day, now standing at $2.45 trillion according to CoinMarketCap data. This widespread sell-off reflects ongoing concerns about inflation and its potential impact on monetary policy.
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