Rising inflation expectations in the US are throwing cold water on hopes for a Federal Reserve rate cut, sending Bitcoin tumbling below $70,000.
The Consumer Price Index (CPI) came in slightly higher than anticipated, leading investors to believe the Fed will likely hold rates steady in June. This shift in sentiment has impacted the cryptocurrency market, with Bitcoin leading the decline.
According to CME Group’s FedWatch Tool, expectations that rates will remain unchanged after policymakers meet in June rose to 34.7% from 28.5% before the CPI data was released.
Bitcoin’s slump dragged down other major cryptocurrencies. Ethereum, the world’s second-largest cryptocurrency by market cap, fell 4% to trade at $3,800 by 17:30 GMT, while XRP took a steeper tumble, dropping 7% after failing to hold above $0.75.
Last updated 17:30 GMT.
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Fueled by a surge in investor interest and hopes of a Federal Reserve rate cut, Bitcoin shattered its previous record, reaching a new all-time high above $72,000. The world’s leading cryptocurrency briefly touched $72,900 before pulling back slightly. As of this morning, it sits comfortably at $72,108.
The positive momentum wasn’t limited to Bitcoin. Ethereum (Eth) also enjoyed a significant boost, climbing to a six-week high of $4,093. Lagging behind but still enjoying its best day in weeks, XRP reached a new daily high of $0.7429. To gain further momentum, XRP needs to surpass the crucial $0.75 resistance level. The next hurdle for XRP is seen at $0.85.
Other notable movers in the last 24 hours included Toncoin (up 23%), Flow (up 12%), and IOTA (up 11%). The cryptocurrency market appears calm at the moment, but all eyes are on the upcoming US inflation report. The report’s outcome could potentially influence future price movements.
