Bitcoin (BTC), Dogecoin (DOGE), and the general cryptocurrency market faced significant corrections last week. Bitcoin (BTC) is down 7.5% on the daily chart, Dogecoin (DOGE) is down 10.5% on the daily chart, and the crypto market cap has fallen 6.2% in the past 24 hours.

Also read: Cryptocurrency: When will the market experience bull run peak? Analyst predictions

Other assets follow a similar pattern. Ethereum (ETH) fell 7.3% in 24 hours, and XRP fell 7.8% in the same time frame. The most significant decline among the top 20 projects was seen by Shiba Inu (SHIB), which lost 12.2% in 24 hours.

Why are Bitcoin, Dogecoin, and cryptocurrency markets falling today?

The recent adjustment may be due to the impact of the US economy data It was released on Thursday. The US inflation rate took a turn in February, rising to 3.2%. The latest CPI (Consumer Price Index) data shows a change from the previous downward trend. Core CPI, which excludes volatile energy and food costs, also rose 0.3%. Rising inflation may have spooked investors. Additionally, rising inflation statistics are likely to push the Fed to cut interest rates.

The market had expected a 150 basis point rate cut in early 2024, but the latest data does not yet support a rate cut.

However, Bitcoin (BTC), Dogecoin, and the general cryptocurrency market could bounce back on the Bitcoin halving wave. Many analysts believe that a halving is bullish because it reduces rewards for miners and reduces supply. Additionally, BTC’s recent rally was due to increased inflows into spot BTC ETF (exchange traded fund) products. Spot BTC ETF inflows may increase again as the US economy improves. Furthermore, the US SEC (Securities and Exchange Commission) may approve a Spot Ethereum (ETH) ETF before the end of the year, which could further boost the market.