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US CPI Hits 2.9%, Yet Core Inflation Cools Below Forecasts: Could Bitcoin Dip Below $90,000?
In a shocking turn of events, the US Consumer Price Index (CPI) has reached an alarming 2.9% in December, casting uncertainty on the future trajectory of the cryptocurrency market. The recent data suggests that inflation is more persistent than anticipated, complicating the Federal Reserve’s decision regarding interest rates.
According to reports, December saw a notable increase in prices, with the CPI rising at a rate higher than expected. This development could lead to a potential dip in Bitcoin’s price below $90,000 in the near future.
The data also revealed that core inflation has cooled below forecasts, indicating a slight easing of pressure on the market. However, this respite may not be enough to halt the impending decline in cryptocurrency prices.
Experts have been warning about the increasing correlation between Bitcoin and Nasdaq stocks. As the dollar’s strength grows, the cryptocurrency is expected to suffer alongside the broader market. Moreover, the recent job report suggests that interest rate cuts might slow down, further complicating the already volatile situation.
The derivatives market has seen an unprecedented surge in open interest for Bitcoin futures, indicating a significant amount of borrowing and selling. This trend is likely to continue until the debt is unwound, leading to a sharp decrease in price.
As a result, investors are advised to exercise caution and reassess their positions before making any rash decisions.
Source: coinpedia.org
