Bitcoin retraced its gains on Monday before the anticipated publication of inflation statistics and U.S. midterm elections. According to statistics provided by CoinGecko, the leading cryptocurrency by market size was trading at $20,710 at the time of writing, a decrease of 2.4% in 24 hours.
The gains it gained over the weekend when it jumped amid reports of U.S. employment growth and briefly exceeded $21,414 have been erased, and it is currently up just 0.5% in the previous seven days.
To keep things simple today, we want to see #BTC hold above this support line.
Otherwise sellers can take control quickly and send price back to $19,500 or below pic.twitter.com/zjTleHIxWI
— Nebraskangooner (@Nebraskangooner) November 7, 2022
The second largest digital asset Ethereum is also falling in value, down $13 in 24 hours to $1,589 USD. Even Dogecoin, the tenth most valuable cryptocurrency, is having trouble. Elon Musk’s favorite “meme currency,” which has fallen 4.7% in value in the last 24 hours, is now worth $0.11.
After Elon Musk announced his acquisition of Twitter, the currency started the month of November on a high note. Despite its comedic origins, Bitcoin became the highest-performing digital asset after rising 94% in a week.
Elections for the 116th Congress, which will serve the United States for the next year, will take place tomorrow. As policymakers weigh how to govern the digital asset space in the next years, the upcoming elections are vital for the cryptocurrency industry.
Launch of Consumer Price Index
On Thursday, the U.S. Bureau of Labor Statistics will issue the consumer price index (CPI), which measures inflation by monitoring changes in the cost of commonly purchased items like food and clothing. If inflation remains high, investors may flee to “safe havens” like the U.S. dollar (which has risen this year) and shy away from Bitcoin.