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Bitcoin (BTC-USD) took a breather from its multi-day rally as hotter-than-expected U.S. consumer price inflation drove market participants to push out their expectations for interest-rate cuts later in the year.
With stubborn inflation indicating the Federal Reserve will be in no rush to start rate reductions, the first-ever cryptocurrency (BTC-USD) dipped 1.8% to $48.7K at 11:02 a.m. ET.
Prior to the U.S. Bureau of Labor Statistics releasing its January CPI report, bitcoin (BTC-USD) actually topped $50K for the first time in more than two years, as recently-approved spot bitcoin exchange-traded funds continued to see strong inflows. Still, the coin failed to fully break out of the psychological threshold.
The lower odds of an imminent Fed rate cut also weighed on traditional markets, with all three major U.S. stock market indices down at least 1% at the time of writing.
Crypto-exposed stocks changed hands in negative territory as well. Michael Saylor’s MicroStrategy (MSTR) retreated 4%, crypto exchange Coinbase Global (COIN) fell 5%, and bitcoin miners Riot Platforms (RIOT) -5% and Marathon Digital (MARA) -7.8% slid.
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