Bitcoin Holds Ground Ahead of Key Inflation Report
Bitcoin is trading at $63,600 as investors await the release of the US Consumer Price Index (CPI) data. The market remains cautious, with CoinMarketCap's Fear and Greed Index registering 37, placing it in the 'fear' category.
The bearish performance comes ahead of Wednesday's CPI report, which could determine whether BTC breaks toward $70,000 or extends its decline.
Analysts expect headline US inflation to ease to 3.4% year over year, while core inflation is forecast to decline to 2.5%. A softer-than-expected reading could weaken expectations for further monetary tightening and support risk assets such as Bitcoin.
A hotter reading, on the other hand, could trigger the opposite reaction, reviving interest-rate concerns and pressuring cryptocurrency prices.