Crypto majors experienced a significant decline over the past 24 hours, led by meme coins shiba inu (SHIB) and dogecoin (DOGE), each dropping about 5%. Major cryptocurrencies like XRP, Solana's SOL, and BNB Chain's BNB also saw declines of around 2%, while the CoinDesk 20 index fell 1.6%. Bitcoin (BTC) is testing support at $67,000 after a brief recovery to $70,000 earlier in the week, and ether (ETH) has dropped over 5% since Monday.

Traders are focusing on Friday's U.S. Personal Consumption Expenditures (PCE) inflation report, which could influence bitcoin's direction. Analysts from bitBank and FxPro suggest that hotter-than-expected inflation data could drive bitcoin down to $65,000 or even $60,000 in a bearish scenario. Conversely, a more optimistic outcome could see a decline to around $65,000, aligning with the 50-day moving average.

Despite recent declines, on-chain analytics from Glassnode indicate a recovery in buyer interest in bitcoin, with long-term holders resuming accumulation for the first time since December 2023. Traditional stock indices also show weakness ahead of the inflation report, which may provide clues on the Federal Reserve's interest-rate trajectory. Higher interest rates typically lead to bearish sentiment among investors due to market liquidity strains, often resulting in sell-offs across various assets.