Bitcoin, Ethereum and Dogecoin Trading Decline on Inflation Data: “Pray $58,000-$59,000 Held Otherwise It’s Nuke City for Bitcoin Baby” – Grayscale Bitcoin Mini Trust (BTC) Shared Units with Fractional undivided benefit share (ARCA:BTC)

Cryptocurrency markets are trading lower as Bitcoin ETFs saw outflows for the second straight day on Wednesday, while spot Ethereum flows remained subdued.

Notable statistics:

• IntoTheBlock data shows that large transaction volumes decreased by 25.7% and daily active addresses decreased by 18.8%. Transactions over $100,000 fell from 9,459 to 7,555 in a single day. Net inflows on exchanges fell by 79.4%.
• Coinglass data reports that 71,977 traders were liquidated in the last 24 hours, with total liquidations reaching $251.47 million.
• Axel Adel JrAuthor of CryptoQuant, reported that whales have accumulated 1.5 million BTC in the last six months.

Notable developments:

Top winner:

Notes for dealers: As Bitcoin prices fell below $60,000, Santiment explained that Bitcoin's drop to as low as $58,900 is being identified by traders as a “dip buying opportunity.” He noted that sentiment is shifting to an optimistic outlook, especially after the US CPI report that suggested possible interest rate cuts are still on the table.

Crypto trader Andrew Crypto presents two possible scenarios for Bitcoin. The most likely outcome is a drop to the $52,000 support level, which could serve as the final flush before the parabolic advance.

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