avalanche AVAX/USD is trading down 8.85% at $16.77 on Friday afternoon. Several altcoins are trading lower in sympathy with the broader cryptocurrency sector following key US economic data. US Services PMI rose to 53.7 in April from 52.6 in March — above expectations of 51.5.

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Cryptocurrencies have also been viewed by some investors as a speculative hedge against inflation, and the Fed’s plans to curb inflation could weigh on the general public cryptocurrency Sector.

“The latest survey reinforces signs that business activity has regained growth momentum after declining in the seven months to January,” Chris Williamson, chief business economist at S&P Global Market Intelligence, said. “The latest read points to GDP growth a little over 2% on the year.”