Bitcoin experiences a 3% decline in price due to US macro data exacerbating the issue of inflation

Bitcoin (BTC) experienced a decline in value as the Wall Street market opened on March 14 due to concerning macro data on inflation in the United States. The BTC/USD 1-hour chart shows a rapid drop in price from its all-time high to $71,200. Despite the passage of time since the decline, there has been no rebound, leaving BTC/USD down by 3.3% for the day. The Producer Price Index (PPI) data for February, which exceeded expectations, further emphasized the persistent issue of elevated inflation. This, along with previous reports on jobless claims and the Consumer Price Index (CPI), has created a problematic situation for the Federal Reserve. Financial commentator Tedtalksmacro predicts that the Fed will maintain higher interest rates for an extended period based on this data. The upcoming Federal Open Market Committee (FOMC) meeting on March 20 was already expected to not result in a rate cut. According to CME Group’s FedWatch Tool, the chances of a rate cut at the subsequent FOMC meeting in May are currently only 6.2%. Despite the recent decline, popular trader and analyst Rekt Capital remains calm, stating that all-time highs are often areas of volatility and require time to resolve before continuing the trend. Trader Jelle also notes that BTC tends to regain strength later in the U.S. trading session after experiencing weakness at the market open. It’s important to note that this article does not provide investment advice, and readers should conduct their own research before making any financial decisions.