US inflation climbed higher than anticipated, triggering a volatile reaction in crypto markets. Bitcoin initially dipped but then recovered, ultimately settling at a higher price. Discussions surrounding CPI reached a 15-month high, suggesting traders are closely monitoring inflation data. The unexpected move in inflation has sparked speculation about the Federal Reserve's next steps on interest rates, which could impact both crypto and traditional markets.
Inflation in the US climbed more than anticipated, which rattled the crypto market. Bitcoin initially dropped to $94,000 but staged an unexpected recovery by rebounding to $98,000 before settling at $96,000.
Discussions surrounding CPI reports have shot up across social media, including X, Reddit, Telegram, 4Chan, Bitcointalk, and Farcaster, ultimately hitting their highest point in 15 months. This uptick was indicative of traders’ increased focus on inflation data amidst an already volatile market environment.
With inflation in the US climbing alarmingly high, many analysts believe it could be a while before the next round of rate cuts, which typically boost markets. The sharp rate hikes of 2022, linked to the massive crypto correction, are still fresh in people’s minds. Santiment has warned that retail traders may start exiting crypto markets if the Federal Reserve delivers a third consecutive disappointing decision, which could then lead to an increased FUD.
INFLATION CPI BITCOIN FEDERAL RESERVE CRYPTO MARKETS
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