Bitcoin price dips below $68,000 after disappointing inflation figures

Bitcoin has dipped to $67,527 on the Bitstamp chart after US macro data were released. Equities are also unable to escape the malaise.

Asset prices dropping with release of the March CPI, which came in hotter than estimates on both MoM and YoY metrics.

Last year, I took the under on all CPI reports vs. estimates and that strategy worked to perfection.

So far in 2024, the right call has been to take the over.

— Caleb Franzen (@CalebFranzen) April 10, 2024

Macro figures

The Consumer Price Index for All Urban Consumers (CPI-U), an American consumer index, rose by 0.4 percent in March. That is the same increase as in February, the US Bureau of Labor Statistics reported today. In the last 12 months, the total index has risen by 3.5 percent.

Both figures are higher than the prior estimates of 0.3% on a monthly basis and 3.4% over the past year. The dollar index, DXY, is benefiting from this news, jumping above 104. American bonds are also in demand again, as the analyst TXMC tells us on X.

pic.twitter.com/C9otcv89RA

— 𝐓𝐗𝐌𝐂 (@TXMCtrades) April 10, 2024

Inflation data coming out higher than expected, thus $DXY rallying upwards anticipating no rate cuts for the year.

— Michaël van de Poppe (@CryptoMichNL) April 10, 2024

The futures market is also anticipating a red day for stocks, as markets try to estimate when America’s central bank will cut interest rates. The current figures, although higher than expected, are still within the expected range. The Fed appears to be waiting to see if inflation remains ‘sticky’ around the 3% range, instead of their target of 2%.

The question is when the interest rate cut will occur. According to this analyst, we should definitely wait until the last quarter of 2024.

Hilarious to me that people thought cuts were coming in March.

Then they said May.

Then they said June.

Now they’re saying July.

The whole time, I said Q3’24 at the soonest.

Recently, I’ve completely ruled out Q3’24.

See you in Q4.

— Caleb Franzen (@CalebFranzen) April 10, 2024