Cryptocurrency Market Tumbles Ahead of Inflation Report

Bitcoin Plunges to $85,000, Ethereum and XRP Slide 5% Ahead of Key Inflation Data

The cryptocurrency market took a hit on Tuesday, with Bitcoin (BTC) plummeting to $85,000 and Ethereum (ETH) and Ripple (XRP) both losing around 5% in value. The sudden downturn comes ahead of a highly anticipated inflation data release, which could have a significant impact on the market.

Bitcoin, the world's largest cryptocurrency by market capitalization, fell as low as $85,000 in the early hours of the day, according to CoinDesk. The price drop marks a significant decline from the cryptocurrency's all-time high of over $100,000 just a week ago.

Ethereum, the second-largest cryptocurrency, also took a hit, falling around 5% to trade at around $2,700. Ripple, a cross-border payments platform that uses XRP as its native cryptocurrency, lost around 5% to trade at around $0.80.

The sudden downturn in the cryptocurrency market comes ahead of the release of the US Consumer Price Index (CPI) data for March. The CPI is a key indicator of inflation, and a high reading could have significant implications for the cryptocurrency market.

Investors are likely to be cautious ahead of the data release, with many expecting a high reading could lead to increased interest rates and a stronger US dollar. This could have a negative impact on the value of cryptocurrencies, which tend to perform poorly in a strong dollar environment.

The cryptocurrency market has been highly volatile in recent weeks, with prices fluctuating wildly in response to changes in the global economy and investor sentiment. The market is highly sensitive to news and events, and the release of the CPI data could have a significant impact on prices.

At the time of writing, the cryptocurrency market was trading down around 3% overall, with Bitcoin, Ethereum, and Ripple all trading lower. The market is likely to remain volatile ahead of the CPI data release, and investors are advised to exercise caution.