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.
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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