Bitcoin Falls Below $68,000 Amid Rising US Inflation

In March, annual inflation in the US accelerated to 3.5%, surpassing the forecast of 3.4% and the previous month’s figure of 3.2%.

Excluding food and energy prices, the CPI reached 3.8%.

On a monthly basis, consumer inflation increased by 0.4%, mirroring the previous month’s rise.

Matthew Miskin of John Hancock Investment Management noted that premature discussions by the Fed about cutting the key rate have led to economic easing.

The #Fed induced significant easing into the economy by talking about rate cuts prematurely.

Now they are moving farther away from their #inflation target every month.

I think this is a good lesson to not call it quits/celebrate before finishing a job. @BLS_gov #CPI pic.twitter.com/beG9rl6KI9

— Matthew Miskin, CFA (@matthew_miskin) April 10, 2024

“Now they are moving farther away from their inflation target every month. I think this is a good lesson to not celebrate before finishing a job,” the expert stated.

Peter Schiff, President of Euro Pacific Capital, emphasized that the index’s rise above expectations indicates insufficient rate hikes.

The hotter than expected rise in Mar. #CPI proves that interest rates are still too low. More rate hikes are required to move the rate back down to 2%. But not only will the #Fed not delivered the required rate hikes, it’s planning to reduce rates, fueling the #inflation fire.

— Peter Schiff (@PeterSchiff) April 10, 2024

“To bring the CPI back to 2%, further hikes are necessary. But the Fed not only refrains from doing this, it plans to cut rates, stoking the inflation fire,” said the well-known gold advocate and Bitcoin critic.

Crypto influencer Keyur Rohit predicted the impact of the data on the movement of the leading cryptocurrency minutes before the release. He considered the higher-than-expected figure a bearish signal.

? My expectations for #Bitcoin and #Crypto after US #CPI Data ✅

? If < 3.4%: Bullish
⚪ If = 3.4%: Neutral
? If > 3.4%: Bearish pic.twitter.com/pvjz2NUSBF

— Keyur Rohit (@CryptoKingKeyur) April 10, 2024

The digital gold slipped below $68,000 even before the US Bureau of Labor Statistics press release. At the time of writing, Bitcoin continues its moderate decline.

Earlier, analysts at Grayscale identified high inflation and key rates as major barriers to the growth of the leading cryptocurrency in the short term.