Bitcoin (BTC) experienced a slight decrease of 0.5% when the Wall Street opened on April 10. This drop was in response to the United States Consumer Price Index report, which showed higher-than-expected figures.
According to data from Cointelegraph Markets Pro and TradingView, the BTC price dropped as much as 2.5% from its opening price of $69,115 to an intra-day low of $67,463 on Coinbase.
The price of Bitcoin reacted to the March Consumer Price Index (CPI) data, which surpassed expectations. In March, inflation rose by 0.4% month-on-month and 3.5% year-over-year, exceeding the estimates of a 0.3% monthly increase and 3.4% year-over-year increase from the Dow Jones economists survey.
The Core CPI, which excludes volatile food and energy prices, increased by 0.4% from February and 3.8% from a year ago, compared to estimates of 0.3% and 3.7% respectively. In March, the CPI increased at an annual rate of 3.2% for all items.
The possibility of the Federal Reserve lowering interest rates in the coming months has sparked debate among market participants, with expectations shifting from a rate cut in June to later in the year. According to the CME’s FedWatch tool, traders currently place the odds of a June rate cut at just 20.6%, compared to 45.9% for September. This means that market analysts believe the U.S. Federal Reserve will keep rates steady in May and June, with the first potential cut happening in September.
Market resource The Kobeissi Letter noted that interest rate futures are now predicting only two rate cuts for the entirety of 2024, marking the first time in history that markets are pricing in fewer rate cuts than the guidance provided by the Federal Reserve.
Despite the upcoming Bitcoin halving event, inflows into spot Bitcoin exchange-traded funds (ETFs) have been decreasing, which is dampening the short-term outlook for Bitcoin investors. On April 9, outflows from the Grayscale Bitcoin Trust (GBTC) amounted to approximately $154.9 million, marking the second consecutive day of negative inflows for spot Bitcoin ETFs.
BlackRock’s iShares Bitcoin Trust, IBIT, had the highest inflow with $128.7 million, followed by Bitwise’s ETF, BITB, with over $3.8 million, and Fidelity’s Wise Origin Bitcoin Fund, FBTC, with $3 million. The rest of the ETFs did not receive any capital inflows on April 10.
The decrease in spot Bitcoin ETF inflows suggests that investors are becoming more cautious about these investment products. However, the market remains optimistic about the potential for Bitcoin to rise after the upcoming halving event, which is less than ten days away.
Vijay Pravin Maharajan, founder and CEO of bitsCrunch, recognizes the significance of the upcoming miner reward halving event. He believes that it could not only push BTC to new all-time highs but also have a positive impact on various other assets.
Please note that this article does not provide investment advice or recommendations. Investing and trading always carry risks, and readers should conduct their own research before making any decisions.