The global crypto market and Bitcoin (BTC) experienced a slight decline following the release of U.S. Consumer Price Index (CPI) data, which exceeded expectations.
The global crypto market and Bitcoin (BTC) experienced a slight decline following the release of U.S. Consumer Price Index (CPI) data, which exceeded expectations.
The CPI annual rate dropped from 3.4% to 3.1%, surpassing the expected rate of 2.9%. Despite the higher-than-expected inflation rate, the Federal Open Market Committee (FOMC) opted not to change the interest rates, maintaining them at 5.25% to 5.50%. The next FOMC meeting is scheduled for March 20, with data from the CME Group indicating an 89.5% probability of no change in interest rates, while 10.5% anticipate a rate cut.
The crypto market responded with bearish sentiment to the unchanged interest rates. According to CoinGecko, the global crypto market capitalization declined by 0.3% over the past 24 hours, standing at $1.95 trillion. Bitcoin also experienced a 0.8% fall, trading at $49,600, with its daily trading volume dropping by 13% to approximately $34 billion. Bitcoin’s intraday low of $48,470 was recorded shortly after the release of the CPI report.
Data from Santiment indicates a decline in Bitcoin’s total open interest (OI) from $9.9 billion to $9.4 billion, reflecting a $500 million decrease. The total funding rate from all exchanges also decreased from 0.014% to 0.01% after the FOMC meeting, suggesting a decline in traders betting on further price surges, indicative of bearish sentiment prevailing in the market.
Bitcoin option trades expiring on March 29, anticipate the asset reaching new all-time highs, with traders targeting prices of $60,000, $65,000, and even $75,000.