2024

Bitcoin

<p>Bitcoin, the most famous cryptocurrency, has seen a 2% decline after reaching a new all-time high above $50,000 the day before. The reason for this downturn? A report on U.S. inflation that was higher than expected. This has impacted expectations for interest rate cuts by the Fed. How does Bitcoin (BTC) react to inflation? What are the prospects for crypto and traditional markets? An analysis.</p>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
  <div class="entry-content-asset">
   <div class="social-embed-container">
    <blockquote class="twitter-tweet" data-width="500" data-dnt="true">
     <p lang="en" dir="ltr">Bitcoin dropped 2% from $50,000 after a hotter-than-expected U.S. CPI reading. <a href="https://twitter.com/sndr_krisztian?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@sndr_krisztian</a> reports<a href="https://t.co/89BRCb5lmr" rel="noopener noreferrer nofollow">https://t.co/89BRCb5lmr</a></p>— CoinDesk (@CoinDesk) <a href="https://twitter.com/CoinDesk/status/1757420472398917884?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">February 13, 2024</a>
    </blockquote>
    <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
   </div>
  </div>
 </div>
 <figcaption class="wp-element-caption">
  BTC price drops 2% within a few hours
 </figcaption>
</figure>
<h2 id="h-the-u-s-inflation-report-a-heavy-blow-for-bitcoin">The U.S. inflation report, a heavy blow for Bitcoin</h2>
<p>The Bureau of Labor Statistics just released the <a href="https://www.cointribune.com/en/the-publication-of-inflation-data-is-approaching-uncertain-future-for-bitcoin/" target="_blank" rel="noopener noreferrer nofollow">U.S. inflation report</a> for January. According to the report, the CPI increased by 0.3% over a month and by 3.1% over a year. This is much more than analysts’ expectations, who were predicting 0.2% and 2.9% respectively. It is the <strong>highest annual inflation rate since 2022</strong>.</p>
<div class="my-4">
 <div class="ads " data-page-type="" data-location="1">
 </div>
</div>
<p>This higher-than-expected inflation had a negative effect on Bitcoin, which fell below $49,000. The flagship crypto had nevertheless breached <a href="https://www.cointribune.com/en/the-us-market-is-buying-bitcoin-at-49000-heading-towards-52000/" target="_blank" rel="noopener noreferrer nofollow">the $50,000 mark</a> the day before. Indeed, this inflation reduces the chances of the Fed lowering its interest rates in the coming months, which would have been favorable to Bitcoin. According to the CME FedWatch tool, <strong>the probability of a rate cut</strong> in May went from 52% to 34%.</p> 
<div class="tradingview-widget-container tradingview--mini-chart">
 <div class="tradingview-widget-container__widget"></div>
 <div class="tradingview--mini-chart--dark">
  <script type="text/javascript" src="https://s3.tradingview.com/external-embedding/embed-widget-mini-symbol-overview.js" async>{"symbol":"BINANCE:BTCUSD","width":350,"height":220,"isTransparent":false,"autosize":false,"dateRange":"12M","trendLineColor":"rgba(253,64,19,1)","underLineColor":"rgba(253,64,19,0.6)","underLineBottomColor":"rgba(253,64,19,0)","locale":"en","largeChartUrl":false,"colorTheme":"dark"}</script>
 </div>
 <div class="tradingview--mini-chart--light">
  <script type="text/javascript" src="https://s3.tradingview.com/external-embedding/embed-widget-mini-symbol-overview.js" async>{"symbol":"BINANCE:BTCUSD","width":350,"height":220,"isTransparent":false,"autosize":false,"dateRange":"12M","trendLineColor":"rgba(253,64,19,1)","underLineColor":"rgba(253,64,19,0.6)","underLineBottomColor":"rgba(253,64,19,0)","locale":"en","largeChartUrl":false,"colorTheme":"light"}</script>
 </div>
 <div class="tradingview-widget-copyright"><a href="https://fr.tradingview.com/symbols/BTCUSD/?exchange=BINANCE" rel="noopener noreferrer nofollow" target="_blank"><span class="text-primary-color">BTCUSD chart</span></a> by TradingView
 </div>
</div> 
<h2 id="h-what-are-the-prospects-for-bitcoin">What are the prospects for Bitcoin?</h2>
<p>Despite <a href="https://www.coindesk.com/fr/markets/2024/02/13/bitcoin-drops-2-on-hotter-than-expected-us-inflation/" target="_blank" rel="noopener noreferrer nofollow">this decline</a>, Bitcoin remains on a <strong>long-term upward trend</strong>. This is driven by growing demand from institutional investors and individuals.</p>
<p>Bitcoin also benefits from the support of influential figures, such as <a href="https://www.cointribune.com/en/bitcoin-on-x-elon-musk-opens-the-door-to-this-possibility/" target="_blank" rel="noopener noreferrer nofollow">Elon Musk</a>. The Tesla boss reportedly invested $1.5 billion in crypto. Therefore, Bitcoin could quickly rebound and <strong>aim for new heights</strong>.</p>
<p>In short, Bitcoin experienced a 2% decline after the release of a higher-than-expected U.S. inflation figure. However, <a href="https://www.cointribune.com/en/is-the-price-of-btc-artificially-inflated-bitcoin-put-to-the-test/" target="_blank" rel="noopener noreferrer nofollow">the crypto</a> remains on a long-term upward trend thanks to its scarcity and popularity. To be continued…</p>

Bitcoin: -2% after the US inflation report

Table of Contents

Cointribune EN

Outros artigos publicados em 14 de fev. de 2024

Top Crypto Gainers Today Feb 13 – Sei, Optimism, Akash Network, Avalanche

Stacks (STX) And Bitcoin Cash (BCH) Price Jump On BTC Uptrend; Rebel Satoshi ($RBLZ) Begins Final...

Helldivers 2 Receives Significant Patch for Enhanced Stability and Connectivity

Transaction volume of new Ethereum standard ERC-404 token hits $70m

Token Release Set for The Sandbox and ApeCoin Games

AI Takes Center Stage: The Absence of Crypto at the World Government Summit 2024

Join our free newsletter for daily crypto updates!