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Bitcoin Wobbles, Fed Tightening Could Get Swayed By CPI Shock By Investing.com

Bitcoin Wobbles, Fed Tightening Could Get Swayed By CPI Shock By Investing.com

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Investing.com – After reaching a high of $45,850 yesterday afternoon, the price corrected sharply to around $42,750 overnight, down 6.7%, and is reluctant to sustain above $43,000 this Friday morning.

Recall that yesterday’s higher than expected data, with 7.5% in annual data compared to 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 recorded losses against the US CPI, and even more, to mark the aforementioned daily high.

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However, that was without counting several reactions to the CPI, which hinted that the rate hike planned for March could reach 0.50%, instead of 0.25%. James Bullard, one of the Fed’s most aggressive voting members, actually advocated 1% before July last night.

Several banks, including Citi, also significantly raised their expectations for a Fed rate hike after 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 short-term support forming at $42,750, which could serve as the basis for a bounce. If, on the other hand, the fall continues, the next support will be the area of ​​$41,500/42,000.

Finally, it should be noted that, unsurprisingly, Bitcoin’s crash has taken most other cryptocurrencies with it. It is currently down 3.5% in 24 hours, just above $3,000. In the top 10, however, it is the one that shows the greatest drop, with a decrease of 6.8%, somewhat more than , which loses 6.5% at the time of writing this article.

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