Bitcoin's price has fallen below $59,000, despite seemingly positive data on US inflation. This the critical cause behind the sudden drop in Bitcoin.
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| Critical Cause behind the Sudden Drop in Bitcoin. Source: TradingVeiw |
Bitcoin price declines by 5% since it rejects low CPI print
Bitcoin delivered classic "fakeout" swings around the August 14 Wall Street open, as bulls missed out on US macro data.
BTC price sheds $3,000 despite positive CPI
Markets data showed BTC price action rising to near $62,000 following the latest Consumer Price Index (CPI) publication.
Coming in below forecasts, the outcome was expected to bolster risk assets and cryptocurrency, but Bitcoin's reaction was brief.
After reaching $61,809 on Bitstamp, BTC/USD dropped by more than 3% in just over an hour.
Popular trader Daan Crypto Trades, who has previously warned of irregular BTC price movements based on US macro data prints, expressed relief.
"The CPI is primarily based on estimates. "This is pretty good, and I doubt it will have much of an impact on markets in the end," he wrote in a post on X.
The most recent data from CME Group's FedWatch Tool suggested that markets continued to anticipate a minor interest rate drop at the Federal Reserve's next meeting in September.
"As headline inflation comes down, Fed rate cuts are on the way," trade resource The Kobeissi Letter continued with some of its own X coverage.
Bitcoin dealer targets $55,000 for long entry
Looking for prospective market entrances, another trader Roman said that Bitcoin may fall by another 10% from current levels.
He contended that the markets lacked sufficient volume to support higher prices.
"Looking for price to hit 58 & possibly 55k before potentially taking longs," he informed X followers.