Elevated Inflation Keeps Pressure on Fed to Raise Rates
U.S. inflation came in hotter than expected for the third consecutive month. Bitcoin, despite its reputation as an inflation hedge, frequently falls when inflation data suggests the Fed will tighten monetary policy. Bitcoin was trading near $74,200 before the announcement and briefly dropped to approximately $73,525 immediately afterward.
Sources
- https://finance.yahoo.com/economy/article/fed-officials-on-watch-for-overheating-demand-as-they-weigh-interest-rate-path-192836091.html
- https://finance.yahoo.com/economy/policy/articles/us-inflation-slows-less-expected-152634543.html
- https://finance.yahoo.com/markets/crypto/articles/bitcoin-falls-hot-us-inflation-162757880.html