Bitcoin (BTC) experienced a slight 0.5% decrease in price at the start of Wall Street trading on April 10, following the release of the United States Consumer Price Index report, which showed higher-than-expected figures.
Data from Cointelegraph Markets Pro and TradingView indicates that BTC dropped as much as 2.5% from its opening price of $69,115 to an intra-day low of $67,463 on Coinbase.
Bitcoin’s price was influenced by the March Consumer Price Index (CPI) data, which surpassed expectations. Inflation in March rose by 0.4% month-on-month and 3.5% year-over-year, compared to the estimated 0.3% monthly increase and 3.4% year-over-year increase. Core CPI, which excludes volatile food and energy prices, rose by 0.4% from February and 3.8% from a year ago, exceeding the estimated 0.3% and 3.7% increases, respectively. The overall CPI increased at an annual rate of 3.2% for all items in March.
Market participants immediately began speculating about the possibility of the Federal Reserve cutting interest rates in the coming months, with the expected timing shifting from June to later in the year. According to the CME’s FedWatch tool, traders currently believe there is a 20.6% chance of a rate cut in June and a 45.9% chance in September. This suggests that market analysts anticipate the Federal Reserve will maintain interest rates in May and June, with a potential cut in September.
This change in expectations has led to a decrease in inflows into spot Bitcoin exchange-traded funds (ETFs), which has impacted the short-term outlook for Bitcoin investors. On April 9, outflows from the Grayscale Bitcoin Trust (GBTC) totaled approximately $154.9 million, while spot Bitcoin ETFs saw net outflows of $18.7 million for the second consecutive day.
Despite the decrease in investor interest in these investment products, the market remains optimistic about Bitcoin’s potential for growth following the upcoming halving event, which is less than ten days away. Vijay Pravin Maharajan, founder and CEO of bitsCrunch, believes that the halving event could not only drive BTC to new all-time highs but also have a positive impact on various other assets.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and assessment of risks before making any investment decisions.