The Block’s Bitcoin Price Rises Despite Equities Slipping
Bitcoin (+2.80%) continued its upward trajectory on Wednesday, defying the slip in major equities following hotter-than-expected U.S. inflation data. The Federal Reserve’s potential interest rate cut was affected by this data, but experts believe it will not impact the crypto market significantly or end the current bull market.
Bitcoin Price Increase
The price of Bitcoin increased by 3% in the past 24 hours and was trading at $72,781 at 12:32 p.m. ET.
Equities Retreat Slightly
In contrast to Bitcoin’s rise, major stock indices experienced a slight retreat in the past 24 hours. The S&P 500 was down 0.12%, while the Nasdaq Composite slipped 0.6%. Nvidia shares were down over 3%, and shares of Meta and Apple fell 1% and 1.3%, respectively.
The Impact of U.S. CPI Release
The release of February’s U.S. Consumer Price Index (CPI) report indicated that inflation remains high, potentially hindering the Federal Reserve’s plan to cut interest rates. Interest rate traders are currently speculating that the Fed will maintain rates in March and May before considering a possible cut in June.
Rate Cut Expectations Adjustments
Analysts expect the market to adjust its expectations for rate cuts in 2024. They predict that the number of rate cuts will decrease from four to two or three by the end of the year. However, this adjustment is not expected to cause a significant sell-off in the crypto market.
The GM 30 Index Increase
The GM 30 Index, which represents the top 30 cryptocurrencies, increased by 3.02% in the past 24 hours and reached a value of 159.46.
Hot Take: Bitcoin Maintains Momentum Despite Equities Slip
Despite the slip in major equities, Bitcoin continues to gain momentum and rise in value. The U.S. inflation data did not significantly impact the crypto market or signal the end of the bull market. Analysts predict that the market will adjust its expectations for rate cuts in 2024, with fewer cuts expected by the end of the year. This adjustment is unlikely to cause a significant sell-off in the crypto market.
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