CPI Released, Bitcoin Price Experiences Flash Dump to US$68,000

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Bitcoin price underwent a significant decline of six percent from the level of US$73,000 to US$68,000 in the early hours of March 13, 2024. The drop in Bitcoin price was also followed by Ethereum, which briefly plummeted to the level of US$3,800.

Data from Coinglass indicates that within the last 12 hours, LONG positions worth US$156.37 million have been liquidated, with Bitcoin trading reaching US$73.08 million and Ethereum at US$52.49 million.


However, at the time of this article's release, there has been a price recovery with Bitcoin returning to the level of US$72,000 and Ethereum rising to US$4,000.

CPI Rises Not in Line with Predictions

Photo by Jason Briscoe on Unsplash

This decline occurred after the release of the Consumer Price Index (CPI) data for the United States, which showed a higher figure than expected, at 0.4% in February.

According to data from the US Bureau of Labor Statistics (BLS), the annual CPI rate rose to 3.2%, exceeding the forecast of 3.1% and the January figure, which was also 3.1%.

In the BLS's official release, it was noted that the rise in housing and gasoline prices were the main contributors to the monthly increase in the CPI index for all items, accounting for more than 60%.

Following the release of the CPI data, market participants began to debate the possibility of a Federal Reserve interest rate cut in the coming months. However, according to the FedWatch CME tool, the likelihood of an interest rate cut in March was only 2% at the time of writing this article, down from 15% on February 12.

This indicates that the market expects the US central bank to maintain interest rates steady this month and in May, with the possibility of the first cut occurring in June.

Read Too : Latest Bitcoin Hits New All-Time High at US$72 Thousand, Market Cap Surpasses Silver!

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