Bitcoin and Gold Prices Correct as US Inflation Concerns Rise
Bitcoin and Gold prices are declining due to concerns over rising inflation in the US economy. According to the Bureau of Labor Statistics, the Producer Price Index (PPI) climbed 5.4% annually in August, surpassing market expectations of 5.3%. This has led to increased speculation that the Federal Reserve will adopt a stricter monetary policy to curb price pressures.
The CME FedWatch tool shows that market participants now believe there is a 70% chance of an interest rate hike on Wednesday's FOMC meeting, up from 61% the day before. This has led to a correction in Bitcoin prices, which have fallen below $80,000 for the first time since September.
Gold prices remain sideways, hovering around $4,365, but momentum has cooled with the Relative Strength Index (RSI) slipping back toward the neutral 50 area and the MACD indicator deep in negative territory.