US macro data worsens inflation problem, causing Bitcoin price to drop by 3%

Bitcoin (BTC) experienced a decline in value on March 14 due to new inflation concerns from US macro data. The decline was swift, with BTC dropping to $71,200 and failing to rebound at the time of writing, resulting in a 3.3% decrease for BTC/USD. The February US Producer Price Index (PPI) numbers came in higher than expected, highlighting the ongoing issue of elevated inflation. This, combined with other economic indicators such as jobless claims and the Consumer Price Index (CPI), presents a challenging situation for the Federal Reserve. Financial commentator Tedtalksmacro predicted that the Fed would maintain higher interest rates for a longer period based on this data. The upcoming Federal Open Market Committee (FOMC) meeting on March 20 was already not expected to result in a rate cut. According to CME Group’s FedWatch Tool, the probability of a rate cut at the subsequent FOMC meeting in May was only 6.2% at the time of writing. Popular trader and analyst Rekt Capital emphasized the need for time to resolve the volatility that occurs at all-time highs before a trend continues. Another trader, Jelle, noted that BTC tends to show strength later in the US trading session but weakness around the market open. This article does not provide investment advice, and readers are encouraged to conduct their own research before making any decisions.