Crypto Market Cap Slips to N2.55T as PCE Index Hits 3.5%
The crypto market capitalisation declined 1.01% to $2.55 trillion over the past 24h, primarily driven by macro-inflation concerns amid a surge in the Personal Consumption Expenditure (PCE) Index.Â
Surging inflation fears from the Iran conflict triggered a macro-driven risk-off move.
The Fed’s preferred inflation gauge, the PCE index, hit 3.5% in March – its highest since May 2023 – driven by soaring gas prices amid the ongoing Iran conflict. This reignited fears of persistent high rates, prompting a sell-off in risk assets, including crypto.
A slew of analysts maintained that crypto is acting as a high-beta risk asset, moving in lockstep with small-cap equities as traders price in a less accommodative monetary policy.
BTC long liquidations surged 290% in 24h to $99.11 million, indicating a violent flush of over-leveraged positions. This was compounded by isolated crashes like Block Street (BSB), which fell by more than 60% after on-chain data revealed that a team wallet moved 5 million tokens to an exchange.
The market’s internal leverage fueled the decline, turning a macro-driven dip into a sharper correction, especially for low-liquidity altcoins.
Technically, the total market cap is testing its pivot point at $2.55 trillion. The immediate path depends on holding the 23.6% Fibonacci retracement level at $2.55 trillion. The next major macro catalyst is the SEC’s roundtable on the CLARITY Act, scheduled for mid-May, which will address regulatory uncertainty.
A hold above $2.55T could lead to a consolidation range of $2.5 trillion to $2.62 trillion. A break below $2.5 trillion opens the path toward the 38.2% Fib level at $2.5T and potentially the 78.6% level at $2.37 trillion. South African Rand Slips as Fed Keeps Rates, Oil Rises
