Bitcoin Faces Challenges Amid Economic Data
Bitcoin, the leading cryptocurrency, has encountered a series of challenges as economic data and Federal Reserve monetary policy come into play. The latest Producer Price Index (PPI) for February revealed unexpected inflation rates, with a 0.6% increase last month, surpassing economist predictions. The core PPI, excluding food and energy costs, also rose in February, albeit at a slower pace than January. These developments have led to a rise in the 10-year Treasury yield and the U.S. dollar, signaling potential negative impacts on risk assets like bitcoin.
Market Response
Following a remarkable 70% surge in 2024, reaching a new high close to $74,000, bitcoin faced a correction amid the inflation news. The cryptocurrency dipped to $70,650 post-data release, with current trading prices at $70,900, reflecting a more than 3% decline over the past 24 hours. Despite this, the broader CoinDesk 20 Index experienced a milder drop of 1.7%, with Solana and Dogecoin contributing to its relative strength.
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