The crypto market is currently under selling pressure, with the majority of crypto assets down as investors consider newly released economic data that provides insights into the health of the U.S. economy, in particular, the personal consumption expenditures price index for March, the Federal Reserve's preferred inflation gauge.

Consumer spending increased 0.7% last month after accounting for inflation, according to Bureau of Economic Analysis statistics released on Wednesday. Meanwhile, the Federal Reserve's favored inflation index, the personal consumption expenditures price index, remained unchanged from a month ago for the first time in nearly a year. Excluding food and energy, the core PCE remained steady, the lowest in nearly five years.

The report earlier Wednesday also revealed that core PCE inflation increased to 3.5% in the first quarter, the most in a year. Wednesday’s report provided some comfort on the inflation front. A measure of goods inflation that excludes food and energy has fallen for the first time this year. Core services prices — a keenly watched category that excludes housing and energy — were scarcely changed, likewise the lowest since 2020.

Crypto market remains down

The crypto market remained lower, with several crypto assets trading in the red, with Bitcoin's rise above $95,000 reversed. The economic data that came in worse than expected triggered a risk-off sentiment across financial markets, resulting in $370 million in liquidations on the crypto market, as investors reassessed their exposure to risk assets.

This coincides with a significant decrease in U.S. stocks, with the Nasdaq down 2% and the S&P 500 down 1.5%. Bitcoin (BTC) has slid roughly 2% to $94,300.

Ethereum (ETH) plummeted 3.73%, and most cryptocurrencies followed suit. Cardano (ADA) and XRP fell more than 5%, while Solana (SOL) fell almost 4%. The marketwide decline saw overall crypto market capitalization fall below $3 trillion, to $2.91 trillion.