Inflation data again disappointed, with the CPI in March rising more than expected, casting doubt on hopes the Fed will cut interest rates at some point in the summer This.
CPI in March increased 0.4% compared to expectations of 0.3% reaching 3.5%, higher than expected 3.4% and 3.2% in February.
Core CPI (excluding food and energy costs) remained unchanged at 3.8% compared to February and higher than the expected 3.7%.
After CPI news, BTC price dumped to 67,550 USD.
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Traditional markets didn't fare well either, with S&P 500 and Nasdaq 100 Futures Contract both down about 1.5%. The 10-year U.S. Treasury yield rose 13 basis points to 4.50% and the DXY dollar index rose 0.5%. Gold, which recently set a new record high almost daily, fell 0.5% to $2,352 an ounce.
In addition to Spot ETFs and the upcoming halving event, looser US monetary policy is expected to be one of the catalysts for Bitcoin's price increase in 2024. The market is currently planning There will be about five or six Federal Reserve rate cuts in 2024, but the specter of persistent inflation pervades much of 2022 and 2023. And for now, inflation has been falling. then increased slightly in the first quarter, still well above the US Central Bank's 2% target.
A series of Fed members have made it clear that they are not inclined to start loosening monetary policy until they see a sustainable path, i.e. more than a monthly report, on the direction of inflation. down.
For now, traders have quickly tempered their expectations for a rate cut with the first move from the Fed coming in June or July.
VIC Crypto compiled
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