Why the Crypto Market is Down Today: BTC Moved to Coinbase, $1B USDT Withdrawn from Exchanges, and Bitcoin Predicted to Fall to $55K

The global crypto market cap has also decreased by 2.62% to $2.08 trillion. Here's why the Crypto market is down today.

Bitcoin price dropped by over 4.7% to around $58,385 after hitting $62,649, following the U.S. Bureau of Labor Statistics report showing a 0.2% increase in inflation for July. The global crypto market cap has also decreased by 2.62% to $2.08 trillion.

The recent dip in Bitcoin’s price also coincided with the release of July’s Consumer Price Index (CPI) data, which showed a 2.9% increase year-over-year. This rate was lower than expected and marked the lowest inflation rate since 2021.

The CPI data has raised speculation about potential interest rate cuts by the Federal Reserve, which could affect market dynamics.

Meanwhile, the U.S. government transferred 10,000 Bitcoin, valued at approximately $591 million, to Coinbase Prime. This transfer, recorded under the wallet name “US Government: Silk Road DOJ,” follows a previous $2 billion Bitcoin transfer in July.

The large movement of funds has raised concerns about potential market impact and the possibility of a significant sell-off.

In other news, over $1 billion in Tether (USDT) stablecoin was withdrawn from crypto exchanges, marking the highest single-day amount since May. This large-scale withdrawal suggests that investors might be shifting funds to safer storage options, possibly in response to expected market volatility.

One renowned crypto trader, who goes by the name Roman on Twitter, highlighted that Bitcoin’s current price behavior is not showing the strength needed for a continued upward trend. The low trading volume combined with rising prices suggests a bearish scenario.

According to Roman, Bitcoin could hit $58K and dip to $55K before considering any long positions.

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