Bitcoin Faces Volatility as US CPI Hits Three-Year High
- US Consumer Price Index (CPI) rose to 3.8% year-on-year, the highest since 2023.
- Energy prices increased by nearly 18% over the past year, influenced by the ongoing US-Iran conflict.
- Bitcoin (BTC) price fluctuated around $81,000 as market conditions tightened.
- Key support levels for BTC are identified at $76,000 and $78,800 for short-term traders.
- Resistance is noted near the critical $82,600 mark based on the Bitcoin’s200-day simple moving average (SMA).
The recent CPI data has raised concerns about potential interest rate hikes from the Federal Reserve, which typically exert downward pressure on Bitcoin and other risk assets due to reduced market liquidity.
As inflation reaches a three-year peak of 3.8%, Bitcoin traders are focusing on maintaining crucial support levels to mitigate further declines below $76K.(Source)
