On Wednesday, the price of Bitcoin dropped below $69,000 before the release of U.S. inflation data.
The largest digital asset based on market value was priced at $68,966, representing a 2.40% decrease from the previous day, according to CoinMarketCap. Meanwhile, the GM 30 Index, comprised of the top 30 cryptocurrencies, experienced a 2.97% decline to reach 146.95 over the past 24 hours.
This afternoon, the American Bureau of Labor Statistics is set to unveil the Consumer Price Index (CPI) figures for March 2024. Analysts predict that inflation will have risen by a yearly rate of 3.4% during this month, surpassing the 3.2% uptick recorded in February.
In contrast, a potential reduction in interest rates by the US Federal Reserve during the first half of 2024 could be influenced by the inflation figures reported for March. Put simply, if the inflation numbers suggest a mild increase, the Fed may be more likely to consider cutting rates.
According to data from the CME’s FedWatch tool, there is a 93.9% probability that the Federal Reserve will not adjust interest rates during their May meeting. On the other hand, the market anticipates a approximately 50.8% likelihood of a rate reduction at the June Federal Open Market Committee gathering.
Before the important U.S. inflation figures due out on Wednesday morning, there was a slight rise in stock futures. The Dow Jones Industrial Average futures went up by 44 points or 0.1%, during early morning trading.
Bitcoins typical behavior is aligned with indices such as the S&P 500 and Nasdaq. Yet, in contrast to their recent slight gains, the S&P 500 adding just a fraction and the Nasdaq rising by 0.32%, Bitcoin displayed distinctly different results over the past day.
Last Friday, before the inflation numbers were released, the U.S. Labor Department shared employment figures for March. These figures showed that American employers added 3,000 jobs more than anticipated, suggesting a strong labor market despite increasing interest rates.
When joblessness is low and employment is thriving, this can cause wages and prices to increase, potentially resulting in inflation. To avoid an economy that’s growing too quickly, the Federal Reserve could keep interest rates unchanged.
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2024-04-10 15:16