Crypto Market Today: Risk-Off Sentiment Dominates Ahead of U.S. PCE Release

**Cryptocurrency Markets Plunge as Risk-Off Sentiment Grips Investors Before PCE Data**

The cryptocurrency market experienced significant turbulence today, with widespread selling pressure driving digital assets into the red ahead of crucial U.S. Personal Consumption Expenditures (PCE) data release. The CoinDesk 20 Index, a benchmark tracking major cryptocurrencies, plummeted 5% over the past 24 hours, with all constituent tokens posting losses.

Bitcoin, Ethereum, and other leading digital currencies faced intense selling pressure as investors adopted a risk-off approach, anticipating potential market volatility from the upcoming PCE inflation report. This bearish sentiment reflects broader concerns about Federal Reserve monetary policy and its impact on risk assets, including cryptocurrency investments.

The sharp decline across all CoinDesk 20 Index members highlights the correlation between traditional financial markets and digital assets during periods of economic uncertainty. Traders and crypto investors are closely monitoring macroeconomic indicators, as inflation data could influence Fed policy decisions affecting liquidity in cryptocurrency markets. This market-wide correction underscores the ongoing sensitivity of blockchain-based investments to traditional economic factors and regulatory developments.