Bitcoin Drops As US Inflation Data Exceeds Forecasts
Portfolio Pulse from Ivan Crnogatić
Bitcoin (BTC) fell 4.4% after the US CPI for March exceeded forecasts, indicating higher inflation than expected. This has dampened expectations for a Federal Reserve rate cut this summer, a previously anticipated bullish catalyst for Bitcoin. The Dollar Index rose by 0.73% in response. Analysts now see a rate cut more likely in September, adjusting their outlook for Bitcoin and the broader financial markets.
April 10, 2024 | 2:19 pm
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Bitcoin dropped 4.4% following higher-than-expected US CPI data for March, affecting expectations for a Federal Reserve rate cut.
The unexpected rise in the CPI indicates higher inflation, which has led to a reassessment of the likelihood of a Federal Reserve rate cut in the near term. This has negatively impacted Bitcoin's price as the market adjusts to the new expectations.
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