Posted 2/13/2024, 3:03:00 PM
Bitcoin Drops Below $49K as Hot Inflation Data Damps Hopes for Near-Term Fed Rate Cut
- Bitcoin dropped to $48,800 as January CPI report showed higher-than-expected 3.1% annual inflation
- Expectations of a Fed rate cut in May fell to 34% from 52% based on CME FedWatch Tool
- Bitcoin fell below $49,000 after hotter inflation reading weighed on interest rate cut expectations
- Broad crypto index CoinDesk 20 (CD20) lost 2.4% along with Bitcoin's 2% drop
- Lower chance of imminent rate cut also weighed on traditional markets like 10-year Treasury yields, S&P 500, and Nasdaq