Bitcoin Plunges to $76,000 Amid Shock Inflation Data

Bitcoin's recent rally was short-lived as it retreated to the $76,000 range due to unexpectedly strong U.S. inflation data.

The sudden spike in core CPI, which excludes volatile food and energy prices, rose 0.3% month-over-month, exceeding economists' forecasts of a 0.2% gain.

This hotter-than-expected reading was interpreted as a signal that inflationary pressures remain stubbornly persistent, causing the probability of a Federal Reserve rate hike to surge.

The strengthened rate-hike expectations put upward pressure on the dollar and U.S. Treasury yields, diminishing the relative appeal of non-yielding risk assets like Bitcoin.

Market analysts note that while this pullback may prove short-lived, the possibility of further downside in richly valued digital assets cannot be ruled out if the Fed actually follows through with a rate increase.