The altcoin market has been experiencing a tumultuous ride lately, with Ethereum, Solana, XRP, and others witnessing significant declines. The recent slump in prices has sparked concerns among investors, with many wondering what's behind the drop and when the market will recover.

Macro Factors Weigh on Altcoin Prices

Several macroeconomic factors and global trends could have contributed to the recent volatility in the altcoin market. Here are some of the top reasons behind the recent selloff:

Bitcoin ETF Outflow: The U.S. Spot Bitcoin ETF recorded an outflow of $200.4 million on Monday, June 11, which has weighed on the broader market sentiment.

U.S. Job Data: Last week's U.S. Job data came in stronger than expected, dampening hopes of a dovish stance by the Federal Reserve.

Inflation and FOMC: The market is eagerly waiting for today's U.S. CPI inflation data, FOMC interest rate decisions, and Fed Chair Jerome Powell's press conference.

When Will Altcoins Recover?

The market has witnessed volatile trading before previous FOMC events this year, but soon after the event, the overall market noted a strong recovery. Market pundits anticipate a recovery in the altcoin prices soon after the event, but it's also worth noting that if the U.S. CPI data comes in hotter than expected, it could extend the ongoing volatility in the altcoin prices.

Current Market Trends

As of writing, Solana price was down 1.32% and traded at $152.67, while XRP price fell 0.54% from yesterday to $0.484. In the meme coins sector, Dogecoin price plunged 1.08% to $0.1405, with Shiba Inu price dropping 0.71% to $0.00002207.

Conclusion

The altcoin market is experiencing a tumultuous ride, with several macroeconomic factors and global trends contributing to the recent volatility. While the market is eagerly waiting for the upcoming events, market pundits anticipate a recovery in the altcoin prices soon after the event. However, it's also worth noting that if the U.S. CPI data comes in hotter than expected, it could extend the ongoing volatility in the altcoin prices.