Cryptocurrency Markets Plunge Ahead of US Inflation Data Release

Financial markets are experiencing significant turbulence ahead of the release of the latest inflation figures by the U.S. Bureau of Labor Statistics. Cryptocurrencies, including Bitcoin and Ethereum, have seen a sharp decline as investors become anxious about the potential impact on Federal Reserve policy and market sentiment. The Crypto Fear & Greed Index has retreated into the "fear" zone at 39, while the traditional equity market sentiment remains in "greed" territory at 72. Analysts are closely watching key support levels for Bitcoin, with the average cost of short-term holders playing a critical role.