Recently, Bitcoin had managed to consolidate nearly $55,000 for itself, an amount which is reflective of the 0.85% decrease on the same day. This article will therefore observe a couple of key factors which contributed to the fall in Bitcoin’s price, which was previously recorded near the $57,500 mark.
February’s inflation rate lower than expected
Simply put, the core inflation rate refers to the changes in price in terms of goods and any other services. However, it does not consider food or energy (due to their volatile nature). This kind of inflation rate is also sometimes referred to as the Consumer Price Index for All Urban Consumers except Food and Energy. Furthermore, the exclusion of both food, as well as the energy usually means a more reliable and accurate result, and it is for this reason that a number of central banks very much prefer employing this inflation rate during the time when they need to set their monetary policies.
Yields and Dollars kept in check thanks to tame U.S inflation report, according to Holger Zschaepitz
The Senior Editor of the Financial and Economic desk of Die Welt (a German daily), Holger Zschaepitz, had given his take on the market update too recently. He had stated that the docile inflation had actually helped keep the Yields and Dollar controlled. This was also in reference to his earlier comments made on Twitter claiming that European and United States Futures had resulted in stocks increasing globally. The resulting reduction in inflation had thus also led to boosts in confidence, according to Holger. China CSI 300 had, however, been the ones to rally the most within a 2-month period.
Ultimately, this entire situation calls for continued research and observation, as it is difficult to ascertain the long-term benefits and disadvantages at this given moment. The reduction in inflation is certainly going to be beneficial for many, but how long this reduction lasts is another question entirely. Also, just earlier today, the United States treasury yields, as well as the United States dollar index, had both experienced a slight decrease.