Bitcoin's volatility leads to a one-week low after hitting record high, impacted by inflation data

From Nasdaq:

Bitcoin experienced a one-week low in volatile trade, dropping over 5% to $66,629.96 before recovering slightly. This comes after reaching a record high of $73,803.25 for the fourth consecutive day. With U.S. inflation numbers higher than expected, prospects of early rate cuts decreased, impacting demand for riskier assets.

Data revealed that U.S. retail sales in February were lower than anticipated while producer prices exceeded expectations, hinting at persistent inflation pressures. This led to a decrease in the likelihood of a Fed rate cut in June, affecting the market sentiment towards risk-sensitive assets like cryptocurrencies. Despite this, bitcoin is still up nearly 60% for the year.

Software firm MicroStrategy plans to buy bitcoin for the second time in less than 10 days through a convertible bond offering. The company previously announced a $600 million private offering in convertible notes on March 5. Experts suggest that the absence of regulations in the crypto market allows for rapid price fluctuations and heightened volatility.

Ether, the second-largest cryptocurrency, mirrored bitcoin’s decline, dropping over 4% to $3,670. The market’s reaction to U.S. inflation data and the potential delay in Fed rate cuts has impacted cryptocurrency prices. This news highlights the volatile nature of the crypto market due to the absence of regulatory safeguards found in traditional stock markets.



Read more at Nasdaq: Volatile bitcoin falls from record high as crypto frenzy hits pause