A few months ago, $40,000 was seen as a satisfying peak, but now it’s being stamped as a possible bottom level. When BTC dropped to $15,500, there were many investors who believed the price would not reach the $50,000 levels again. Time has worked in favor of investors in the right cryptocurrencies, and here we are today. So, what will Bitcoin be worth tomorrow?
Bitcoin (BTC) Takes Another Dip
The king cryptocurrency recently rose again after hitting a low of $48,300 at the time of writing. BTC is now finding buyers at $49,000. Core inflation in the United States increased by 0.4% last month, a rise that was not expected. Therefore, the annual decline forecasts also found a weak response.
Even though annual inflation has decreased, core inflation remained at 3.9% due to the monthly data. This rise in inflation continued to erase the already beginning bubble related to the Federal Reserve’s interest rate cuts, causing BTC to fall.
Kathy Jones, Fixed Income Strategist at Charles Schwab, suggested delaying interest rate cuts. Jones also said;
“The Fed will see this as another reason to wait until May or June, but the trend direction is still lower. Since a large part of the increase comes from housing, we will have to wait to see when these costs will decrease.”
Will Bitcoin (BTC) and Cryptocurrencies Fall?
The new CPI data tells us why we need to be more realistic this year. The Fed does not expect a significant easing on the employment front. While the market predicts a 150bp cut, the Fed continues to talk about a 75bp cut. And the latest inflation data caused the previously certain rate cuts in March and May to be shelved.
So, what will happen with cryptocurrencies? Santiment wrote the following in light of the latest data;
“The polarization of sentiment is likely after Bitcoin surpassed $50,000 for the first time in over two years yesterday, followed by a drop below $49,000 today. According to analysts, if significant panic selling occurs, the sentiment will turn negative while the rationale for buying the dip will become significantly more applicable.”
Despite Santiment’s optimism, CryptoCon wrote that the BTC price will soon experience a new drop to $40,000. The next CPI data will arrive on March 12th, and this data is now much more important.
