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US CPI Hotter Than Expected: Will Bitcoin Drop Back into the Bearish Well?

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US CPI Hotter Than Expected: Will Bitcoin Drop Back into the Bearish Well?

Story Highlights

  • Fresh CPI rates were reported, which are higher than expected, due to which traditional financial markets and the crypto space are expected to experience a minor pullback

  • After reaching $50,000, the bears became vigilant, and the fresh bearish catalyst is expected to trigger a small retracement with the lower base offering strong support

The crypto market closed one of the bulliest and craziest weeks for the first time in the past two years. The bitcoin price also recorded a 15% jump, which was never seen in recent history. These bullish sentiments pushed the BTC price above $50,000 in the early trading hours, where bearish activity restricted the rally. However, the crypto markets were expected to remain volatile as the fresh US CPI rates were about to be released. 

Soon after reaching $50,600, the BTC price remained consolidated around the gains without attempting to test the higher targets. This was speculated to be an impact of the upcoming CPI rates. Now that the rates have been announced to be 3.1%, higher than expected at 2.9%, the markets are flashing signals of entering a retracement phase. 

Whether it is the end of the bull run or a temporary pullback,?

To Be Continued

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