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Bitcoin Breaks Key Support As US CPI Comes in Hot At 3.5% – Crypto News

Published

1 year ago

April 10, 2024

Dripp

The U.S. Bureau of Labor Statistics released the highly anticipated Consumer Price Index (CPI) inflation data for March, which indicated that a hotter-than-expected result after the inflation print came in at 3.5%. That compares to analyst expectations of 3.4% and the previous month’s inflation number of 3.2%. The March inflation print held extreme importance for financial markets for assessing the trajectory of the Fed’s rate cuts.

After two consecutive disappointing inflation data in January and February, the bets on the first-rate cuts by the Fed had shifted from June to September. Today’s data further cements the idea that the Fed’s much-expected 2% inflation rate is still far from becoming a reality. The data also highlighted that the interest rates might remain higher for a little longer before the Fed finally starts embarking on the rate cut journey.

US Inflation Lands Hotter Than Expected

US CPI numbers showed that the Consumer Price Index for All Urban Consumers (CPI-U) climbed by 0.4 percent in March on a seasonally adjusted basis, which is the same increase as in February. Before seasonal adjustment, the all-items index grew by 3.5 percent over the previous 12 months.

At the same time as last month, yearly core CPI inflation continued to settle at 3.8%. The US is still experiencing a slow deflation process, despite the high rate of inflation, according to the March report.

Analysts on average had expected the core CPI print to be 0.3% month-on-month. Reuters reports that analysts also anticipated the statistics to indicate that headline inflation increased from 3.2% in February CPI to 3.4% year over year. The core number, which does not include volatile items like food and energy, was expected to decrease to 3.7% year over year from 3.8% in February.

Bitcoin Price Breaks Key Support Level

As financial markets grappled with the disappointing inflation data, Bitcoin prices slipped below the key levels indicating the ripple effect of turbulence in the market. At the press time, BTC price stands at $67,721.59, being down nearly 4.3% as compared to the same time last day.