Key Takeaways
- Bitcoin price drops 3% as U.S. inflation data heightens concerns.
- February's PPI data indicates persistent inflation, which will in turn affect the Federal Reserve's decisions.
- Federal Reserve expected to maintain higher interest rates for an extended period.
Bitcoin’s price fell to $70,339, marking a 3% decline, following the release of U.S. macroeconomic data that highlighted ongoing inflation issues.
Bitcoin had recently approached all-time highs but retreated after the data’s publication.
PPI data signals inflation persistence
The Producer Price Index (PPI) for February exceeded expectations, suggesting that inflation remains a persistent challenge.
This data, along with recent jobless claims and Consumer Price Index (CPI) figures, presents a complex situation for the Federal Reserve.
Fed expected to maintain rates
Financial analyst Tedtalksmacro anticipates that the Federal Reserve will keep interest rates “higher for longer” in response to the inflation data.
The upcoming Federal Open Market Committee (FOMC) meeting on March 20 is not expected to result in a rate cut, with only a 6.2% chance of a cut at the May meeting according to CME Group’s FedWatch Tool.
