Following the release of the latest U.S. Consumer Price Index (CPI) report, which indicated a slowdown in inflation, Bitcoin and the wider crypto market experienced a dip.
Bitcoin Dips Following CPI Report
Following the release of the latest U.S. Consumer Price Index (CPI) report, which indicated a slowdown in inflation, Bitcoin and the wider crypto market experienced a dip. The Bureau of Labour Statistics (BLS) recorded a 0.4% increase in the CPI last month, mainly in the shelter segment, compared to a 0.6% increase in August. However, CPI remained at 3.7%, higher than the forecasted 3.6%.
Bitcoin witnessed a 1.3% drop following the release of CPI figures, and is currently trading at $26,787. Ethereum, the second-largest cryptocurrency, dipped as much as 2.9%, and is now trading at $1,541.
Analysts suggest that the market is adjusting to the expectation of sustained inflation and anticipate that the Federal Reserve will not hike rates in the next FOMC meeting. According to FedWatch, the probabilities of no change in rates is 90.2%.
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