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Breaking | Crypto News - Archive

Bitcoin Falls After CPI-Induced Short-Term Rally

Author

Jonathan Gibson

Tags

Reading time

2 mins
Last update

Author

Jonathan Gibson

Tags

Category

Breaking / Crypto News - Archive

Reading time

2 mins
Last update

Author

Jonathan Gibson

Tags

Reading time

2 mins
Last update

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Bitcoin (BTC) has fallen to $27,100 as it reverses the gains registered in recent weeks due to a slowdown in the CPI data coming from the United States. Inflation rates in the United States have fallen to 4.9% compared to 5% in March on a y/y basis. This shows that, after a long period of high inflation rates we could be entering a new stabilization phase. 

Bitcoin Falls As CPI Falls in the United States

Bitcoin, the largest cryptocurrency in the market, has fallen to $27,000 as inflation in the US seems to be slowing down. According to CoinGecko, Bitcoin is now being traded at around $27,140 and it has a market capitalization of $525 billion. 

In recent years, Bitcoin has been traded very similarly to major financial markets, especially since the COVID-19 crisis started in 2020. As interest rates moved downwards, investors found a unique possibility in Bitcoin to invest their money. 

Btc Bitcoin

This was accompanied by an increase in the stock market and a strong surge in the price of other assets, including real estate. Therefore, with the recent volatility experienced in financial markets, we could see Bitcoin moving higher or lower, depending on where traditional markets move. 

Another thing to take into consideration about Bitcoin is related to interest rates. If they move lower in the near future, then we could see BTC starting a new bull trend, which could fall at the same time as the next halving (in May 2024). 

Nevertheless, this remains to be seen and things could change in the coming years. Another thing that could have a strong impact on Bitcoin and its price is linked to the regulations that have been implemented by different countries and regions such as the European Union (EU).