Bitcoin [BTC] breaks $26k, CPI drops – is the euphoria back

ambcrypto.com:

Bitcoin [BTC] continued its unprecedented bullish run and climbed above $26,000 as the United States Bureau of Labor Statistics released its February Consumer Price Index (CPI) data. According to the country’s fact-finding agency, the CPI dropped to 6% on a Year-on-Year (YoY) basis.

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The CPI expresses the change in the current prices of goods in a given year compared to the prices within a base period. The metric used to measure inflation rose to 6.4% per January’s data. However, the 14 March declaration implied that the CPI had dropped for the eighth consecutive month, hitting the lowest since September 2021.

After the announcement, BTC only took a few minutes to reach the aforementioned price. But at press time, the coin had lost its hold on the region and was trading at $24,967. 

However, CNBC’s report on the situation mentioned that Signature and Silicon Valley Bank crashes have now ignited the hypothesis that a hike in Fed rates would cease for a while. 

The Fed meeting determines monetary policy and assesses the long-term objectives of price stability and economic growth. With the next one billed for 22 March, the consumer news and business channel pointed out:

“Banking sector turmoil in recent days has kindled speculation that the central bank could signal that it soon will halt the rate hikes.”

Prior to the announcement, BTC and many other cryptocurrencies were pricing at a peak. But before the coin hit its Year-To-Date (YTD) high, some investors were bullish on the reaction. According to Lookonchain, a pseudonymous whale named “Rewkang” increased his long BTC position hours before the CPI report.