Bitcoin Dips Below $49,000 As Inflation Numbers Spook Market
Portfolio Pulse from Murtuza Merchant
Bitcoin (BTC) fell below $49,000 due to market reactions to higher-than-expected inflation data, which dampened hopes for Federal Reserve rate cuts. The Consumer Price Index (CPI) report indicated persistent inflation, particularly in the services sector, leading to a significant decrease in the likelihood of a March rate cut from 77% to 9%. This shift in expectations caused investors to move away from riskier assets like cryptocurrencies.
February 13, 2024 | 7:27 pm
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Bitcoin's price fell below $49,000, influenced by higher-than-expected inflation data and reduced expectations for Federal Reserve rate cuts.
The unexpected high inflation data led to a reassessment of the Federal Reserve's monetary policy, particularly the likelihood of rate cuts. This reassessment caused a shift in investor sentiment, moving away from riskier assets like Bitcoin, resulting in a price drop.
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