Bitcoin Falls 3% In An Hour Despite CPI Data Meeting Expectations

On Aug 14, 2024

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Bitcoin fell 3% in just over an hour following the latest Consumer Price Index (CPI) data, which came in below expectations.

BTC spiked to almost $62K on the back of the CPI print, but has since retraced below the psychological $60K mark to trade at $59,309.52 as of 9:25 a.m. EST.

Inflation Slowing To Lowest Rate In 3 Years

The CPI increased 0.2% on a seasonally adjusted basis after it declined 0.1% in June. Throughout the past 12 months, the index rose 2.9% before seasonal adjustment. This came in just below the 3% rise that economist’s had anticipated.

The main reason for the increase was rising housing costs. Looking at just energy and food shows that the core CPI increased by 0.2% monthly and 3.2% annually, which was in line with expectations. The annual rate is also the lowest it has been since March 2021. Similarly, the core rate has come in the lowest it has been since April of the same year.

Bitcoin Could Still Drop To $55K, Warns Analyst

Commenting on BTC’s reaction to the latest CPI data, popular trader Daan Crypto Trades said in an Aug. 14 X post that he doubts the economic data will “impact markets much in the end.” He added, “at least no crazy upside or downside surprise is good.”

$BTC 1D
Looking for price to hit 58 & possibly 55k before potentially taking longs.
My plan has remained unchanged for the last week. Not seeing strength here for continuation upwards as we have bearish price action (low vol + price up).#bitcoin #cryptocurrency #cryptonews pic.twitter.com/0cM4nduQMb
— Roman (@Roman_Trading) August 14, 2024

Meanwhile, another crypto trader that goes by the name Roman warns that the leading crypto could still drop some more in the coming days. “Looking for price to hit 58 & possibly 55K before potentially taking longs,” he told his followers.

Roman reiterated concerns he has about BTC’s price climbing despite a lack of volume, and added that he is not seeing the strength needed to signal a continuation of an uptrend.

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