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Analysis: With U.S. PPI coming in stronger than expected and the FOMC meeting approaching, Bitcoins have fallen back to the $72,000 range.
Svmuu News: Bitcoins have fallen back to around $72,000 following the release of U.S. inflation data that exceeded expectations. The data showed that the U.S. Producer Price Index (PPI) rose 0.7% month-over-month and 3.4% year-over-year in February, both higher than market expectations, continuing the recent upward trend in inflation.The data release came just hours before the Federal Reserve’s interest rate decision. Although the market widely expects no rate adjustment this time, market volatility will still depend on Chair Jerome Powell’s remarks and policy guidance. Singapore-based trading firm QCP Capital noted that macroeconomic factors remain the dominant variables in the current market.As rising oil prices dampen expectations for interest rate cuts, the supportive impact of the interest rate environment on the crypto market is waning. Traders have generally adopted a cautious stance. Analyst Jelle noted that Bitcoin is currently still stuck below a key resistance level, and that “it is safer to remain cautious” ahead of the FOMC meeting, warning of the risk of a break below support.Some observers even believe the market remains in a bear market phase. (Cointelegraph)
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