Bitcoin (BTC) experienced a slight 0.5% decline when Wall Street opened on April 10 due to the release of the higher-than-expected United States Consumer Price Index report. The BTC price dropped by as much as 2.5% from its opening price of $69,115 to a low of $67,463 on Coinbase. This drop was a response to the inflation data from the March Consumer Price Index, which surpassed expectations. In March, inflation rose by 0.4% month-on-month and 3.5% year-over-year, exceeding the estimates of 0.3% and 3.4% respectively. The Core CPI, which excludes volatile food and energy prices, increased by 0.4% from February and 3.8% from the previous year. The market reacted to this data by speculating about the possibility of the Federal Reserve lowering interest rates later in the year instead of in June. Traders are currently placing a 20.6% chance of a rate cut in June and a 45.9% chance in September, according to the CME’s FedWatch tool. This change in market sentiment is significant as it is the first time in history that markets are anticipating fewer rate cuts than the guidance provided by the Federal Reserve. Despite the inflation data and the decrease in spot Bitcoin ETF inflows, the market remains optimistic about Bitcoin’s future after the upcoming halving event. The event is less than ten days away and is expected to have a positive impact on Bitcoin and other assets. However, it is important to note that this article does not provide investment advice and readers should conduct their own research before making any investment decisions.
Doubts on Fed rate cuts arise as Bitcoin price weakens following strong CPI data