Bitcoin price is pulling back after a surge, pressured by rising U.S. inflation (CPI 2.9%) and fears of higher Federal Reserve interest rates. The move has trimmed volume and investor risk appetite, while Nasdaq and S&P futures show relative strength.
Bitcoin price retreats on hotter U.S. inflation
Nasdaq futures up 0.35% and S&P futures up 0.27% contrast with weaker crypto flows.
Bitcoin trading volume fell ~12.35% to $47.94B, signaling reduced investor participation.
Bitcoin price drops amid U.S. inflation rise (CPI 2.9%); read analysis, market data, and next steps for traders — stay informed with COINOTAG.
What is causing the Bitcoin price pullback?
Bitcoin price is pulling back primarily because U.S. inflation unexpectedly strengthened (CPI 2.9%), raising market expectations that the Federal Reserve will maintain higher interest rates. Higher rates reduce the appeal of risk assets, prompting lower crypto flows and increased volatility.
‘,
‘
🚀 Advanced Trading Tools Await You!
Maximize your potential. Join now and start trading!
‘,
‘
📈 Professional Trading Platform
Leverage advanced tools and a wide range of coins to boost your investments. Sign up now!
‘
];
var adplace = document.getElementById(“ads-bitget”);
if (adplace) {
var sessperindex = parseInt(sessionStorage.getItem(“adsindexBitget”));
var adsindex = isNaN(sessperindex) ? Math.floor(Math.random() * adscodesBitget.length) : sessperindex;
adplace.innerHTML = adscodesBitget[adsindex];
sessperindex = adsindex === adscodesBitget.length – 1 ? 0 : adsindex + 1;
sessionStorage.setItem(“adsindexBitget”, sessperindex);
}
})();
How does U.S. inflation affect Bitcoin trading and sentiment?
Rising U.S. inflation raises the prospect of prolonged restrictive monetary policy. Markets priced in the CPI reading of 2.9% (up from 2.7%), prompting caution among traders. Short-term effects include lower trading volume and widened bid-ask spreads. On-chain demand can wobble, while institutional allocations pause pending policy clarity.
Bitcoin’s price faces a downturn as rising U.S. inflation pressures the market. The cryptocurrency sees reduced trading activity amidst economic uncertainties.
- Bitcoin’s price faces a pullback due to concerns over rising U.S. inflation and potential interest rate hikes by the Federal Reserve.
- Traditional financial markets like the Nasdaq and S&P futures show a more positive outlook compared to the struggling cryptocurrency market.
- The decline in Bitcoin’s trading volume signals growing investor uncertainty amidst the ongoing market volatility and inflation concerns.
Bitcoin’s recent price surge has encountered a significant setback. After peaking near $114,686, the asset is trading around $114,439.98, reflecting a modest 0.5% gain over 24 hours but a clear loss of momentum.
Why are interest rates important for Bitcoin?
Interest rates set by the Federal Reserve determine the cost of capital. When rates rise or remain high, yield-bearing assets become comparatively more attractive. This reduces liquidity for risk-on assets like Bitcoin and can trigger short-term sell-offs.
‘,
‘
🔒 Secure and Fast Transactions
Diversify your investments with a wide range of coins. Join now!
‘,
‘
💎 The Easiest Way to Invest in Crypto
Dont wait to get started. Click now and discover the advantages!
‘
];
var adplace = document.getElementById(“ads-binance”);
if (adplace) {
var sessperindex = parseInt(sessionStorage.getItem(“adsindexBinance”));
var adsindex = isNaN(sessperindex) ? Math.floor(Math.random() * adscodesBinance.length) : sessperindex;
adplace.innerHTML = adscodesBinance[adsindex];
sessperindex = adsindex === adscodesBinance.length – 1 ? 0 : adsindex + 1;
sessionStorage.setItem(“adsindexBinance”, sessperindex);
}
})();
Source: https://en.coinotag.com/rising-u-s-inflation-could-weigh-on-bitcoin-as-trading-volume-falls/