Key Takeaways
- Bitcoin's price dropped 5% despite positive inflation data.
- BTC/USD briefly spiked to $62,000 before falling $3,000 in an hour.
- Traders suggest a potential further drop to $55,000 amid low trading volume.
Bitcoin’s price dropped suddenly by 5% on August 14, falling below $59,000, despite a lower-than-expected U.S. Consumer Price Index (CPI) report.
The data initially pushed Bitcoin to nearly $62,000, but the gains were short-lived, with BTC dropping by more than $3,000 in just over an hour.
CPI
Traders had anticipated that the favorable CPI report would support Bitcoin’s upward momentum, but instead, the market saw a rapid decline.
One trader, Roman, expressed concerns about the lack of volume to maintain higher prices, predicting a potential further drop to $55,000 before considering any long positions.
Another trader, Daan Crypto Trades, had cautioned earlier about the potential for erratic price movements in response to U.S. macroeconomic data. He noted that while the CPI print was largely as expected, it didn’t seem to have a significant impact on the markets, with prices moving independently of the data.
Rate cut
Meanwhile, the CME Group’s FedWatch Tool showed that markets are still leaning towards a small interest rate cut at the Federal Reserve’s next meeting in September, despite the recent CPI report.
