The Impact of U.S. CPI Data on the Crypto Market
The global crypto market and Bitcoin (BTC) experienced a slight decline following the release of the U.S. Consumer Price Index (CPI) data. The CPI annual rate exceeded expectations, dropping from 3.4% to 3.1% instead of the anticipated 2.9%. Due to this higher inflation rate, the Federal Open Market Committee (FOMC) decided not to change the current interest rates, which stand at 5.25% to 5.50%. The next FOMC meeting is scheduled for March 20, and there is an 89.5% probability that interest rates will remain unchanged.
Bearish Sentiment in the Crypto Market
As a result of the decision to maintain interest rates, the crypto market displayed bearish sentiment. CoinGecko data reveals that global crypto market capitalization decreased by 0.3% over the past 24 hours, reaching $1.95 trillion. Bitcoin also suffered a 0.8% fall in value, currently trading at $49,600 with a daily trading volume of approximately $34 billion.
Bitcoin experienced an intraday low of $48,470 shortly after the release of the CPI report. Santiment data indicates a decrease in Bitcoin’s total open interest (OI) from $9.9 billion to $9.4 billion, reflecting a $500 million decline. The market intelligence platform also shows a reduction in the total funding rate from 0.014% to 0.01% across all exchanges, suggesting a decrease in traders betting on a price surge.
Future Expectations for Bitcoin
According to a report by crypto.news, Bitcoin option trades expiring on March 29 predict new all-time highs for the asset. Traders are speculating prices of $60,000, $65,000, and even $75,000.
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