Bitcoin Tumbles Below $64K as Traders Await Inflation Report
The price of Bitcoin (BTC) is currently trading below $64,000 as investors await the US inflation report. The Consumer Price Index (CPI) data release could determine whether BTC breaks towards $70,000 or extends its decline.
Traders are cautious ahead of the CPI data, with CoinMarketCap's Fear and Greed Index registering 37, placing the market in the 'fear' category. This suggests that traders remain reluctant to increase their exposure to volatile assets.
The bearish performance comes as 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 reinforce the disinflation narrative and weaken expectations for further monetary tightening, supporting risk assets such as Bitcoin.
However, a hotter reading could trigger the opposite reaction, reviving interest-rate concerns and pressuring cryptocurrency prices.