Bitcoin Price Decline Linked to Rising US Inflation Data
Bitcoin’s price dropped by over 3% on March 28 due to unexpectedly high US inflation data. The BTC/USD pair fell below $84,500, attributed to higher core PCE levels. Analysts express caution, highlighting the necessity for Bitcoin to hold above $84K to mitigate bearish trends.
On March 28, Bitcoin (BTC) experienced a decline of over 3% as new US inflation data emerged stronger than anticipated. The BTC/USD pair, after initially rising to $85,500 at the Wall Street opening, ultimately fell below $84,500 on Bitstamp, marking its lowest point since March 23. The US Personal Consumption Expenditures (PCE) Index revealed a concerning increase in inflation compared to previous months, with core PCE figures surpassing projections.
In summary, Bitcoin’s recent price fluctuations reflect the market’s response to an unexpected rise in US inflation, as suggested by the PCE data. Analysts remain cautious, indicating that the cryptocurrency must maintain above $84,000 to avoid a descending trend. Market participants should be prepared for potential volatility stemming from continuing macroeconomic developments.
Original Source: cointelegraph.com
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