Cryptocurrency Market Faces Pressure Ahead of US Inflation Report

The cryptocurrency market has been facing mounting pressure in recent days, with Bitcoin, Ethereum, and XRP struggling to break above key supply zones. The release of the US inflation data on Tuesday is expected to have a significant impact on the market sentiment.

According to the latest data, the Consumer Price Index (CPI) in March came in hotter than expected, with headline inflation at 3.3% year-over-year, up from 2.4% in February. Excluding volatile food and energy prices, the core CPI rose to 2.6% year-over-year in March, up from the previous 2.5%. Markets expect CPI to rise year-over-year by 3.7% in April, while the core reading is forecast at 2.7%.

The market sentiment remains stable ahead of the US inflation report, with the Crypto Fear & Greed Index rising to 49 in the fear territory on Tuesday, up from 48 the previous day. Institutional interest in XRP digital investment products showed significant growth with inflows totaling $26 million on Monday, up from approximately $6 million on Friday.

Technical analysis suggests that Bitcoin is still trading just under the 200-period EMA at about $81,826, which acts as a nearby cap. A mildly positive Moving Average Convergence Divergence (MACD) histogram and a Relative Strength Index (RSI) around 61 on the daily chart hint that upside momentum is present but not yet impulsive.