Bitcoin falters, Fed tightening could get carried away following shock CPI


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Investing.com – After peaking at $45,850 late yesterday afternoon, the price posted a sharp correction to around $42,750 overnight, a 6.7% drop, and is reluctant to hold above of $43,000 this Friday morning.

Recall that yesterday’s higher than expected, at 7.5% in annual data against 7.3% expected and 7% previously, initially caused Bitcoin to fall when it was published at 2:30 p.m.

However, the cryptocurrency then quickly erased the losses posted against the US CPI, and even more, to mark the daily peak mentioned above.

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However, that was without counting several reactions to the CPI, which suggested that the rate hike scheduled for March could reach 0.50%, instead of 0.25%. James Bullard, one of the most hawkish voting members of the Fed, indeed pleaded last night for a , and in total 1% before July.

Several banks, including Citi, also significantly raised their expectations of a Fed rate hike following the CPI.

This, coupled with traders’ reluctance to sustainably push Bitcoin above $45,000, has led to a correction in the cryptocurrency.

However, it should be noted that the hourly chart shows that it is forming a short-term support at $42,750, which could serve as a basis for a rebound. If, on the contrary, the decline continues, the next support will be the zone of 41,500/42,000$.

Finally, it should be noted that unsurprisingly, the fall of Bitcoin has taken most of the other cryptocurrencies with it. The is currently losing 3.5% over 24 hours, just above $3000. In the top 10, however, it is the one that shows the biggest drop, with a decline of 6.8%, slightly more than the , which lost 6.5% at the time of writing this article.

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