The Bitcoin price briefly crashed below $60,000 for the first time since September. This price decline followed the release of the Consumer Price Index (CPI) inflation data, which came in higher than expected. This macro data and factors like the US presidential elections are causing market uncertainty, leading to a bearish outlook for the flagship crypto. 

Why The Bitcoin Price Crashed Below $60,000

The Bitcoin price crashed below $60,000 following the release of the US CPI inflation data. The CPI showed that inflation in the US hit 2.4% in September, higher than expectations. This provided a bearish outlook for BTC, suggesting that the Fed’s 50 basis points (bps) rate cut might not happen at the November FOMC meeting as expected. 

Traders were already pricing into the 50 bps rate cut happening following Fed Chair Jerome Powell’s dovish speech after the rate cut at the September FOMC meeting. However, recent developments like the CPI inflation data show this might not happen. A rate cut is typically bullish for Bitcoin since more liquidity will likely flow into the crypto’s ecosystem following such monetary easing policies. 

It is worth mentioning that the CPI data isn’t the only macro development that has brought about the bearish sentiment among investors. The US Jobs report, released last week, also raised questions about the US economy. 

The nonfarm payroll data figures came in way higher than expectations, leading market participants to question the authenticity of the data and whether the labor market was as strong as Powell earlier suggested.

Meanwhile, the Fed’s September minutes showed that a rate cut in November was far from certain. The Committee stated at the meeting that they will decide on their next course of action based on incoming data, like the CPI d

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Author: Best Owie