• U.S. inflation rose to 3.2%, higher than expected, with core inflation coming in at a steady 4.8%
• Bitcoin reacted slightly positively to the news, up 0.48%
• Short-term holders have tightened their grip as the $30,000 threshold looms
Troubling Signs for Bitcoin as U.S. Investors Pull Back
U.S. investors seem to be pulling back from Bitcoin as news of an uptick in inflation to 3.2%, higher than expected, seems to have triggered a decline in investment into the cryptocurrency market overall. This trend is troubling for Bitcoin and marks a shift away from its reputation as a “digital gold” asset and into an independent trading pattern that is not necessarily influenced by traditional markets and economic trends like inflation rates or interest rate changes.
Bitcoin Trading Flat Following Uptick in Inflation
The recent Consumer Price Index (CPI) data shows a stronger inflationary trend than the previous month at 3.2%. Core inflation remained steady with the forecast, manifesting at 4.8%, but came in at 4.7% year over year, 0.1% lower than forecasts. In response to this news, Bitcoin reacted slightly positively with an increase of 0