Bitcoin (BTC) experienced a decline in value on March 14 as new macro data from the United States raised concerns about inflation. The decline occurred shortly after BTC reached its all-time high and dropped to $71,200 within a few hours. As of now, the price has not rebounded, leaving BTC/USD down 3.3% for the day. The February Producer Price Index (PPI) numbers came in higher than expected, highlighting the persistent issue of elevated inflation. This, along with recent jobless claims and the Consumer Price Index (CPI) print, has created a challenging landscape for the Federal Reserve. Financial commentator Tedtalksmacro predicts that the Fed will maintain higher interest rates for a longer period of time based on this data. The upcoming Federal Open Market Committee (FOMC) meeting on March 20 was already expected to not result in a rate cut. The odds of a rate cut at the subsequent FOMC meeting in May currently stand at just 6.2%. Despite the decline in BTC price, analyst Rekt Capital remains calm and suggests that all-time highs are typical battlegrounds for volatility before a trend continues. Another trader, Jelle, notes that BTC price patterns show strength recovering later in the U.S. trading session. It is important to note that this article does not provide investment advice, and readers should conduct their own research before making any decisions.
US macro data exacerbates inflation issue, causing Bitcoin price to drop by 3%