Bitcoin slips 3% as US macro data complicates inflation woes.
Bitcoin (BTC) opened higher on Wall Street on March 14 after US macro data presented a fresh inflation headache.
PPI will increase the Fed rate “high for a long time”.
Data from Cointelegraph Markets Pro and TradingView tracked BTC's rapid decline from an all-time high of $71,200.
This took a few hours, and at the time of writing, BTC/USD is down 3.3% on the day.
February's US producer price index (PPI) numbers did not appear to help matters, with higher than expected underscoring the persistent nature of inflation.
The PPI joined both jobless claims and the Consumer Price Index (CPI) publication two days ago to reinforce a troubled landscape for the Federal Reserve.
Commenting on X, financial analyst Tedtalksmacro predicted the Fed would keep interest rates “high for a long time” on the back of the data.
The next meeting of the Federal Open Market Committee (FOMC) on March 20 was already scheduled to avoid rate cuts.
“I will say one thing, though I do believe that macro is secondary to institutional flows/to the clarity that is currently driving this market,” he admitted in an additional post.
According to the latest estimates from CME Group's FedWatch Tool, the odds of a rate cut at the FOMC meeting in May were just 6.2 percent at the time of writing.
“Awaiting Price Discovery” beyond key position.
Considering the broader picture for BTC price action, prominent trader and analyst Rect Capital maintained a calm climate.
Related: Bitcoin Up 1,800% 4 Years After 2020 COVID-19 BTC Price Crash
All-time highs, he noted, are known battlegrounds for both upward and downward volatility and require time to “unwind” before a trend continues.
“Anytime Bitcoin breaks an old all-time high, the price doesn't just enter an unstoppable run,” he told X followers along with an illustrative chart.
Historically, $BTC has experienced a lot of reversals and negative volatility around old ATHs. But if that volatility resolves itself…price discovery awaits.
Closer to home, another trader, Jelle, argued that current BTC price patterns see a recovery of strength in the US trading session, with weakness in the open.
“Bitcoin is seeing most of its volatility around US market open hours,” trader Diane CryptoTrades wrote early on about the event.
“Especially the recent spills are happening every time the market opens (and ETF trading goes live). The latter US session and the Asian session have seen us recover from those spills.”
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
