The cryptocurrency market is currently under significant selling pressure, with Bitcoin, the largest digital currency, dropping below the $62,000 mark. This downturn has placed approximately 5.1 million Bitcoin addresses in a precarious position, potentially facing losses.

According to data from IntoTheBlock, about 5.1 million Bitcoin addresses, representing roughly 10% of the total addresses, purchased BTC above $62,000, up to the all-time high (ATH) of $72,500. At the time of IntoTheBlock's report, Bitcoin was trading around $62,540.

At the time of writing, Bitcoin (BTC) was down 1.34% over the past 24 hours, trading at $61,931. This decline mirrors a broader fall in the cryptocurrency market as investors anticipate key economic data releases. The market experienced a slight dip on Tuesday as investors awaited new inflation data and comments from Federal Reserve policymakers, seeking clues about the future direction of monetary policy. The April Producer Price Index (PPI), which measures wholesale inflation, is due for release on Tuesday. Economists surveyed by Dow Jones predict the PPI to grow 0.3% from the previous month.

This PPI release is the first of two major inflation reports scheduled for the week, with the Consumer Price Index (CPI) for April expected on Wednesday. According to another Dow Jones survey, economists anticipate a year-on-year rise of 3.4% and a monthly increase of 0.4% for the CPI. These statistics could shape investor expectations about the timing and number of rate cuts this year. If the CPI and PPI suggest that inflation is decreasing, the likelihood of rate reductions may increase, and vice versa.

Additionally, several Federal Reserve officials, including Chair Jerome Powell, are scheduled to speak this week, potentially providing further insights into the monetary policy outlook.

On a more positive note, digital asset investment products saw $130 million in inflows for the first time in five weeks. Bitcoin received $144 million in inflows, recovering from a challenging month so far. Despite this positive development, the market's prevailing sentiment appears to be one of indecision, reflecting the uncertain economic environment and the upcoming critical data releases.