Bitcoin (BTC) prices fell nearly 2% to $67,500 in early U.S. trading after a report from the U.S. Bureau of Labor Statistics showed that the Consumer Price Index (CPI) rose faster than analysts expected, prompting investors to lower expectations for interest rate cuts this year. .
This wave of market declines was reflected in multiple asset classes, but Bitcoin gradually erased all losses, rebounding nearly 5% after hitting lows, standing back above $70,000, outperforming U.S. stocks and gold. As of the time of publication, Bitcoin was trading at $70,830.
Digital asset hedge fund QCP Capital said the rally showed underlying demand for Bitcoin, with investors viewing the drop as a buying opportunity. QCP wrote in its Telegram update:
“This rebound is not surprising as even during this decline, trading desks are still seeing strong demand for forward BTC calls, which shows deep structural bullish sentiment towards BTC.”
Will Clemente, co-founder of Reflexivity Research, said on the Goal to get out of debt problem. Clemente added: “Bitcoin is an insurance against this situation.”
Bitcoin getting bid into the stock mkt close, trading back above $70kMaybe the market is realizing option 3 laid out here is the most likely resolution to the debt situation and Bitcoin is insurance against this https://t.co/nsP5PeCQW2
— Will (@WClementeIII) April 10, 2024
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This article Bitcoin bounces back from US inflation data to rebound to $70,000 first appeared on Zombit.
