Bitcoin Dips Despite US Inflation Slowdown
Bitcoin Dips Despite US Inflation Slowdown
Bitcoin (BTC) experienced a sell-off on March 12th, despite encouraging news of a slowdown in US inflation. After reaching three-day highs of $84,437 on Bitstamp, BTC reversed course, dropping to $82,400 before consolidating.
The January US Consumer Price Index (CPI) came in lower than expected at 2.8%, marking the first decline in both headline and core CPI since July 2024. This positive inflation data, however, was quickly overshadowed by selling pressure from Wall Street, impacting the crypto markets.
Key Market Trends and Analysis
Several market analysts offered perspectives on Bitcoin's price movements:
- Rekt Capital highlighted Bitcoin's exit from a CME gap, suggesting a potential retest could occur.
- Daan Crypto Trades focused on the 200-day simple and exponential moving averages (SMA/EMA) as key support levels (currently around $83,550 and $85,650, respectively). He noted that sustained price action above these levels would be bullish.
The decline in Bitcoin price coincided with $153.87 million in net outflows from Bitcoin ETFs, notably from Grayscale's Bitcoin Trust (GBTC), which offloaded 641 BTC (valued at approximately $56.45 million). This suggests growing caution among institutional investors.
Macroeconomic Factors and Outlook
QCP Capital emphasized that the CPI data will influence the Federal Reserve's upcoming interest rate decision. Lingering inflation concerns and broader macroeconomic risks could impact market volatility.
Disclaimer: This article does not provide financial advice. Conduct thorough research before making any investment decisions.
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