The reason for the drop in Bitcoin has been revealed. 🚨 Inflation rose, Bitcoin fell. 📉
🇺🇸 US annual CPI came in at 3.7%.
Expectation: 3.6% 📊
Previous: 3.4% 📉
The data came in above expectations, and inflation accelerated again. 🔥
First reaction:
$BTC → dropped below $83,000. 📉
Because the market directly connects this to interest rates. 💵🔗
As long as inflation remains high, the likelihood of the Fed keeping interest rates high for longer—or even raising them again—grows stronger. 🏛️📈
Following the data, expectations for an interest rate hike in October strengthened, and 3 additional rate hikes through the end of 2027 started to be priced in. 🗓️⚡
Short-term US rate futures also declined. 📊🔻
In short:
Inflation rose 📈 → Rate expectations increased 🏛️ → #Bitcoin under pressure. 📉💥
🇺🇸 US annual CPI came in at 3.7%.
Expectation: 3.6% 📊
Previous: 3.4% 📉
The data came in above expectations, and inflation accelerated again. 🔥
First reaction:
$BTC → dropped below $83,000. 📉
Because the market directly connects this to interest rates. 💵🔗
As long as inflation remains high, the likelihood of the Fed keeping interest rates high for longer—or even raising them again—grows stronger. 🏛️📈
Following the data, expectations for an interest rate hike in October strengthened, and 3 additional rate hikes through the end of 2027 started to be priced in. 🗓️⚡
Short-term US rate futures also declined. 📊🔻
In short:
Inflation rose 📈 → Rate expectations increased 🏛️ → #Bitcoin under pressure. 📉💥