US Macro Data Triggers Bitcoin Price Decline Amid Inflation Concerns

Lately, the world of cryptocurrencies, especially Bitcoin, has been rocked by the ups and downs of the economy.

by Faruk Imamovic
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US Macro Data Triggers Bitcoin Price Decline Amid Inflation Concerns
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Lately, the world of cryptocurrencies, especially Bitcoin, has been rocked by the ups and downs of the economy. Bitcoin's price took a hit, dropping to $70,877 because of new worries about inflation in the US, sparked by recent economic reports.

How US Inflation Figures are Messing with Bitcoin

After some alarming inflation news from the US, Bitcoin's price started to fall. This setback comes just as Bitcoin was hitting its stride, reaching new highs. The news wasn't great—the Producer Price Index (PPI) for February was higher than people expected, adding to concerns raised by recent unemployment and Consumer Price Index (CPI) reports.

Together, these reports are a sign that inflation isn't going away anytime soon, which could be a problem for the Federal Reserve's plans. Financial experts are talking about this, too. For instance, Tedtalksmacro mentioned on X (formerly Twitter) that he thinks the Federal Reserve will keep interest rates high for a while to deal with these inflation issues.

Many in the finance world are bracing for the next Federal Open Market Committee (FOMC) meeting, expecting that interest rates won't be cut, keeping with the theme of "higher for longer" rates.

What's Next for Bitcoin Amid Economic Shake-Ups

Despite the knee-jerk reaction to the economic news, some folks are still hopeful about Bitcoin's future.

Analysts like Rekt Capital are asking for a bit of patience, noting that Bitcoin tends to go through a lot of ups and downs after hitting new highs before settling into a new trend. They believe Bitcoin will bounce back once the current economic storm passes.

What's interesting is how Bitcoin's price tends to stabilize later in the US trading day after starting off shaky. Traders like Jelle and Daan Crypto Trades have noticed this pattern, pointing out that Bitcoin seems to recover its losses by the end of the day, especially during the US and Asian trading sessions.

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