The shadow of inflation and the US government's massive Bitcoin sell-off hit the crypto market across the board

The crypto market has fallen due to renewed concerns about inflation. Market concerns are also growing over the U.S. government's potential sale of 69,370 Bitcoins seized from the Silk Road market. The crypto market was hit on Thursday, mainly due to inflation concerns and news of the U.S. government potentially selling billions of dollars worth of Bitcoins. Bitcoin (BTC) fell 2.7% to $60,500, while Ethereum (ETH) fell 1.4% to $2,394. Other major cryptocurrencies, such as Solana (SOL) and Polkadot (DOT), also declined, falling 3.7% and 1.5% respectively. Concerns continue to grow over the U.S. government's potential sale of 69,370 Bitcoins seized from the Silk Road market. Traders are concerned that this batch of Bitcoins, worth around $4.4 billion at current prices, could disrupt the market if sold. On October 8, the U.S. Supreme Court declined to hear an appeal regarding the ownership of these Bitcoins, effectively clearing the way for the government to auction them off. This decision upheld a 2022 ruling allowing the U.S. to sell the seized assets, sparking market concerns about how such sales would be handled and their impact on Bitcoin prices. Bitget Research Department's chief analyst, Ryan Lee, stated that large-scale Bitcoin sales typically trigger market volatility. "If sold all at once or in a short period, the sudden increase in supply could dampen market sentiment, leading to a sell-off and causing a short-term drop in Bitcoin prices," Lee said. He added that some investors may preemptively adjust their positions to mitigate risks, further exacerbating short-term volatility. "Some investors may be concerned that the influx of these Bitcoins could put downward pressure on prices, especially if sold on the open market." The overall crypto market has been hit by a risk-off sentiment. According to CoinGlass data, around 66,000 traders were liquidated in the past 24 hours, with a total liquidation value of $184 million. CPI Exceeds Expectations In the U.S., the latest Consumer Price Index (CPI) report showed prices rose 2.4% year-over-year in September, exceeding the 2.3% increase expected by Dow Jones economists. This data may play a key role in the Federal Reserve's November interest rate decision. Meanwhile, the U.S. Dollar Index (DXY) rose to 102.97, reaching its highest level since mid-August. A strong dollar often puts downward pressure on cryptocurrency prices, as it makes dollar-denominated assets like Bitcoin less attractive to investors. Additionally, Producer Price Index (PPI) data and earnings reports from major banks like JPMorgan Chase and Wells Fargo will provide more information to assess the health of the U.S. economy. On Thursday, the U.S. stock market was flat, with the Dow Jones Industrial Average declining 0.2%, while the S&P 500 and Nasdaq indexes fluctuated slightly.