Bitcoin Slumps Ahead of US Inflation Report
Bitcoin is trading below $64,000 ahead of the US inflation report. The cryptocurrency market remains cautious, with investor sentiment in the 'fear' category according to CoinMarketCap's Fear and Greed Index, which stands at 37.
The bearish performance comes as traders await the Consumer Price Index (CPI) data release later today. Analysts expect headline US inflation to ease to 3.4% year over year, while core inflation is forecast to decline to 2.5%. However, a softer-than-expected reading could reinforce the disinflation narrative created by last week's disappointing employment report.
On the other hand, a hotter reading could trigger the opposite reaction, reviving interest-rate concerns and pressuring cryptocurrency prices. Bitcoin remains below key moving averages, with the 50-day EMA at $64,583 representing the first significant dynamic resistance level.