Bitcoin, Ethereum, Dogecoin Trade Lower Following Inflation Data: 'Pray $58K-$59K Holds Or Else It's Nuke City For Bitcoin Baby'

Cryptocurrency markets are trading lower as Bitcoin ETFs clocked a second consecutive day of outflows on Wednesday while Spot Ethereum flows remaining muted.

Notable Statistics:

• IntoTheBlock data shows large transaction volume decreasing by 25.7% and daily active addresses falling by 18.8%. Transactions greater than $100,000 are down from 9,459 to 7,555 in a single day. Exchanges netflows are down by 79.4%.
• Coinglass data reports 71,977 traders were liquidated in the past 24 hours, with the total liquidations at $251.47 million.
• Axel Adel Jr, CryptoQuant author, reported that 1.5 million BTC has been accumulated by whales over the last six months.

Notable Developments:

• Gary Gensler Doubts Cryptocurrency Future, Says Leading Figures Are Either In Jail Or Awaiting Extradition
• Millennials Favor Crypto ETFs As Top Investment Asset, Schwab Reports Growing Bullish Sentiment Among ETF Investors
• What’s Going On With Bitcoin Mining Stock CleanSpark Thursday?
• FBI Busts $25M Crypto Fraud Ring: 18 Charged In ‘Operation Token Mirrors’ Involving Fake Token NexFundAI

Top Gainers:

Trader Notes: With Bitcoin prices dropping below the $60,000 mark, Santiment detailed that Bitcoin’s fall to as low as $58,900 is identified as a “dip buy opportunity” by traders. He indicated that sentiment was shifting to a bullish outlook, especially following the U.S. CPI report that suggests potential rate cuts are still on the table.

Crypto trader Andrew Crypto presents two potential scenarios for Bitcoin. The most probable outcome is a decline to the support level of $52,000, which could serve as the final flush before the parabolic run.

The second scenario is the ultra-bull scenario with support at the $57,000/$60,000 demand zone.