Bitcoin sinks below $68k following US inflation data release

by

March’s annual consumer price index in the U.S. was 3.5%, and Bitcoin reacted with a decline.

Amidst this backdrop, Bitcoin (BTC) underwent a noticeable drop, dipping down to approximately $67,500. Simultaneously, as reported by the U.S. Department of Labor, inflation spiked by 0.4% on a monthly basis – a considerable increase compared to February’s value. Moreover, the Inflation Rate index has continued its upward trend for three consecutive months since January.

After the release of new inflation figures, Bitcoin’s price dipped below $68,000. Previously, Bitcoin had experienced a decline which triggered a large number of contracts being liquidated. As per CoinGlass reports, over $311 million worth of these contracts were terminated, with a notable percentage being long positions.

At present, Bitcoin is approximately priced at $67,700 in current market transactions, showing a slight rebound after a significant drop. The trading activity has surged by 7%, resulting in a total of $35.6 billion exchanged over the last day.

The Consumer Price Index (CPI) gauges inflation levels. When CPI numbers are large, the buying power of paper currencies like the dollar decreases. While Bitcoin is often seen as a protective investment during inflationary periods, its connection to CPI and price fluctuations isn’t consistently positive or clear-cut. The digital currency market is known for its unpredictable nature.

Towards the end of March, analysts at QCP Capital predicted that Bitcoin could experience a correction in the near future because of increasing inflation rates in the U.S. According to their analysis, there would be fewer investments in the Bitcoin spot ETF market, which led to a weak price pullback beneath $61,000 when the indicator turned red.

Read More

2024-04-10 16:47