United

Bitcoin

<p><strong>Investors are surprised by the March Consumer Price Index (CPI) report. This report shows a higher-than-expected increase. This news has called into question hopes of a series of interest rate cuts by the FED this year. Consequently, the bitcoin market has experienced turbulence. Let’s explore the impact of this situation on the crypto market.</strong></p>
<h2 id="h-persistent-inflation">Persistent Inflation</h2>
<p>While a slowdown in inflation is eagerly awaited, March figures are out. Contrary to expectations, these figures showed an increase of 0.4%, exceeding the forecasts of 0.3%. Over a year, the CPI climbed 3.5%, above the 3.4% expected. It is considered a key indicator for Bitcoin enthusiasts.</p>
<div class="my-4">
 <div class="ads " data-page-type="" data-location="1">
 </div>
</div>
<p>This higher-than-expected inflation had a direct impact on the price of bitcoin. It dropped by more than 1% to reach $68,200 in the minutes following the report’s release. Traditional markets also did not react well. They saw declines of around 1.5% for the futures contracts on the S&amp;P 500 and Nasdaq 100 indexes. In addition, the yield on the 10-year US Treasury bonds jumped 13 basis points reaching 4.50%. While the dollar index climbed 0.5%.</p>
<div class="affiliate-button"><span class="affiliate-button__link obfuscated-link" data-href="https://www.cointribune.com/newsletters/" data-target="_blank" data-rel="noreferrer noopener">Découvre notre newsletter gratuite</span> <span class="affiliate-button__disclaimer obfuscated-link" data-href="https://www.cointribune.com/en/sponsored-content/" data-target="_blank" data-rel="noreferrer noopener">Ce lien utilise un programme d’affiliation</span>
</div>
<h2 id="h-uncertain-prospects-for-bitcoin">Uncertain Prospects for Bitcoin</h2>
<p>Prior to this announcement, investors were expecting more accommodative monetary policies from the FED to be a bullish catalyst for bitcoin in 2024.</p>
<p>Investors were expecting something entirely different. They anticipated that more accommodative monetary policies from the FED would be a bullish catalyst for bitcoin in 2024. However, the persistence of high inflation calls these expectations into question. Market participants have had to revise their forecasts, switching from around 5 or 6 rate cuts expected this year to only 2 or 3. The first could possibly be in <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html" target="_blank" rel="noopener noreferrer nofollow">June or July</a>.</p>
<p>The persistence of inflation in the United States has created an <a href="https://www.cointribune.com/en/the-crypto-market-is-back-in-the-red/" target="_blank" rel="noopener noreferrer nofollow">unfavorable context</a> for bitcoin. It has shaken the hopes of a monetary easing that could have benefited crypto. Investors will now have to reassess their strategies in the face of these new market conditions. They will thus be waiting for clearer signs of the FED’s sustainable control over inflation.</p>
<div class="affiliate-button"><a class="affiliate-button__link" href="https://accounts.binance.com/en/register?ref=35547494" target="_blank" rel="noopener noreferrer nofollow">Acheter ses premières cryptos avec la plateforme Binance</a> <a class="affiliate-button__disclaimer" href="https://www.cointribune.com/en/sponsored-content/" target="_blank" rel="noopener noreferrer nofollow">Ce lien utilise un programme d’affiliation</a>
</div>

The rise in inflation rates is shaking up Bitcoin!

Table of Contents

Cointribune EN

Другие статьи, опубликованные 10 апр. 2024 г.

METALSWAP KNOWLEDGE - HALVING ALTCOIN STRATEGY

Elite Crypto Analyst Shares 9 Base Projects Poised for 10-100x Potential

Next Cryptocurrency To Explode Wednesday, April 10 – Theta Fuel, DeXe, MX TOKEN

Massive sell-off alert amid $300 million token unlock on Friday

US Senators Gillibrand and Lummis Set to Unveil a New Stablecoin Legislation

Bitcoin (BTC) Google Searches Just Surpassed Taylor Swift and Beyonce’s

Join our free newsletter for daily crypto updates!