CryptoQuant found out that short-term traders started selling the cryptocurrency as early as last week.
The pressure has been building over the past few days. Bitcoin (BTC) briefly dipped below $27,000 on Wednesday morning, but it partially recovered early in the European session.
At the time of publishing this review, BTC was trading at $27,268. Ether (ETH) fell to $1576.
XRP and Solana (SOL) suffered the biggest losses this week, with these altcoins falling more than 6% to $0.487 and $22.39, respectively.
Meme cryptocurrencies Dogecoin (DOGE) and Shiba Inu (SHIB) fell to $0.059 and $0.000006865. The market capitalization decreased to $1.06 trillion.
FRNT Financial CEO Stephan Ouellet believes that digital currencies will retreat in the coming days. A slight improvement in the situation is expected if the inflation rate in the United States is below forecasts.
Such data will be released next Thursday. If the consumer price index falls, the Federal Reserve may refrain from tightening monetary policy.
If inflation remains high, the regulator will be forced to maintain a tight course, and this will inevitably increase pressure on stock markets and cryptocurrency, the expert emphasized.