Türkçe
Español
Bitcoin, started to decline following the opening of Wall Street on March 14, as US macroeconomic data presented new inflation worries. Data from TradingView followed Bitcoin‘s price rapid descent from its all-time high, falling below $71,000. This decline lasted several hours, and at the time of writing this article, there had not yet been a recovery, with the BTC/USD pair experiencing up to a 3.3% drop during the day.
Why Did Bitcoin Fall?
The US Producer Price Index (PPI) figures for February came in above expectations, highlighting the enduring nature of high inflation. The PPI joined the pressure from unemployment claims and the Consumer Price Index (CPI) two days prior, reinforcing a problematic outlook for the Federal Reserve.
Financial commentator Tedtalksmacro, reacting via Twitter, predicted that the Fed would keep interest rates higher for a longer period following the data. The Federal Open Market Committee (FOMC) was not planning to cut interest rates at its next meeting on March 20. According to the latest predictions from the CME Group’s FedWatch Tool, the probability of a rate cut at the next FOMC meeting in May was only 6.2% at the time this article was written.
Analysts Quickly Comment on the Matter
Bitcoin price movement, when considered in a broader context, found popular investor and analyst Rekt Capital maintaining a calm stance. He argued that all-time high levels are classic battlegrounds for volatility in both directions and that time is needed to resolve before continuing the trend. Rekt Capital shared the following statement:
“Whenever Bitcoin breaks its old All-Time High, the price does not enter an uninterrupted uptrend. Historically, Bitcoin has experienced significant volatility around its old ATH levels. However, once this volatility is resolved, price discovery awaits us.”
Another investor, Jelle, argued that current Bitcoin price patterns showed strength consolidating in later hours of the US stock session, with weakness at the opening. Analyst Daan Crypto Trades initially shared these thoughts on the process:
“We see most of the Bitcoin volatility process during the hours the US market is open. Especially recent drops occur whenever the market opens. We see the volatility being recouped towards the end of the US session and during the Asian session.”
