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March’s annual consumer price index in the U.S. was 3.5%, and Bitcoin reacted with a decline. 
Against this background, Bitcoin (<a href="https://crypto.news/price/bitcoin/" target="_blank" rel="">BTC</a>) experienced a sharp decline, reaching about $67,500. In monthly terms, according to the U.S. Department of Labor, inflation accelerated by 0.4% — significantly higher than the value from February. The Inflation Rate figure continued to rise for the third consecutive month since January. 
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 <img loading="lazy" decoding="async" width="1024" height="499" src="https://crypto.news/app/uploads/2024/04/Screenshot-2024-04-10-at-16.25.02-1024x499.png" alt="Bitcoin sinks below $68k following US inflation data release - 22"> 
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 Source: Trading Economics
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Immediately after the publication of inflation data, Bitcoin’s price fell below $68,000. BTC had already experienced a drawdown, which caused a wave of liquidations in future contracts. According to CoinGlass data, liquidations reached $311 million, with a significant prevalence of long positions. 
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 <img loading="lazy" decoding="async" width="1024" height="529" src="https://crypto.news/app/uploads/2024/04/Screenshot-2024-04-10-at-16.13.27-1024x529.png" alt="Bitcoin sinks below $68k following US inflation data release - 23"> 
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 Source: CoinGlass
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As of this writing, BTC is trading at around $67,700, recovering slightly from its sharp decline. Trading volumes increased by 7% to $35.6 billion over the past 24 hours. 
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 <img loading="lazy" decoding="async" width="1024" height="532" src="https://crypto.news/app/uploads/2024/04/Screenshot-2024-04-10-at-16.13.56-1024x532.png" alt="Bitcoin sinks below $68k following US inflation data release - 24"> 
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 Source: CoinMarketCap
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The consumer price index measures inflation. When CPI reaches high values, fiat currencies like the dollar lose their purchasing power. Some consider Bitcoin a haven for capital, however, in practice, the correlation between CPI and <a href="https://crypto.news/tag/bitcoin/" target="_blank" rel="">Bitcoin’s</a> price is not always positive and straightforward. The digital asset market is characterized by its volatility. 
At the end of March, analysts at QCP Capital <a href="https://crypto.news/qcp-capital-predicts-a-larger-bull-run-post-bitcoin-halving/" target="_blank" rel="">stated</a> that BTC could face a correction in the medium term due to rising inflation rates in the United States. In its forecast, QCP analysts pointed to a reduction in capital inflows into the spot Bitcoin <a href="https://crypto.news/tag/etf/" target="_blank" rel="">ETF</a> sector. The indicator’s transition to the red zone resulted in an ‘inadequate’ drawdown in the asset price below $61,000. 
 You might also like: <a href="https://crypto.news/how-do-you-sell-bitcoin/" rel=""> How to sell Bitcoin: a comprehensive guide </a>

Bitcoin sinks below $68k following US inflation data release

crypto.news

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