CPI increasing in February 2024 creates tension to BTC

The widespread selling pressure in the financial market stemmed from concerns that the period of high interest rates may prolong as inflation fails to cool down.

The Dow Jones Industrial Average closed down 524.63 points (1.35%) on February 13th, settling at 38,272.75 - marking its worst point drop since March 2023. During the session, it dipped over 750 points, equivalent to 1.95%.

The S&P 500 also closed in the red, dropping 1.37% to 4,953.17 points, while the Nasdaq Composite fell 1.8% to 15,655 points. The Russell 2000 index was also heavily affected, dropping nearly 4% - marking its sharpest decline since June 2022.

Both gold and cryptocurrencies followed a similar trend. Precious metals experienced significant selling due to investor sentiment. Futures contracts for April delivery of gold dropped by 1.64%. In the cryptocurrency market, Bitcoin - the largest by market capitalization - declined by nearly 3%, from over $50,000 to $48,600 within minutes of the CPI announcement.

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The Fed seems to be considering keeping the interest rate hike in 2024.

The cryptocurrency BTC is currently hovering around $49k after touching $50k which is just a correction following a period of strong growth.

There would be a possibility of resuming upward momentum to reach new highs after the adjustment. :clinking_glasses:

BTC had already bounced back to the 50k level in a day. Traders are talking about a target of 70k.

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:smiley: It is seem to be an optimistic view, yet it is achievable.