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Although the U.S. Consumer Price Index (CPI) for February met market expectations, easing concerns over a resurgence in inflation, the cryptocurrency market—including bellwether Bitcoin (BTC)—has continued to move cautiously rather than rebounding.
According to investment media outlet FXStreet on March 11 (local time), the February CPI released by the U.S. Department of Labor rose 2.4% year-over-year and 0.3% month-over-month. The core index, which excludes volatile energy and food prices, also increased 2.5% year-over-year and 0.2% month-over-month, exactly matching Dow Jones consensus estimates. The latest data does not yet fully reflect the impact of the sharp rise in international oil prices following the U.S. and Israel’s airstrike on Iran on February 28.
Despite clearing this major macroeconomic hurdle, the crypto market has failed to establish a clear direction. As of 9:49 p.m. on March 11, data from global cryptocurrency tracking site CoinMarketCap showed Bitcoin trading at $69,290.65, down 1.70% over the past 24 hours and remaining below the $70,000 level. Even after the CPI release, investor sentiment did not recover, with Bitcoin facing strong resistance from its downward-sloping 50-day, 100-day, and 200-day exponential moving averages (EMAs).
The altcoin market is also continuing its sideways movement within a narrow range. Ethereum (ETH) fell 1.39% over the past 24 hours to $2,022.85, barely holding above the $2,000 support level. XRP declined 0.55% to $1.38, while Dogecoin (DOGE) dropped 2.49% to $0.09248. The total cryptocurrency market capitalization slipped 1.05% to $2.37 trillion, and the market’s “Fear and Greed Index” stood at 24 (Fear), reflecting heightened investor caution.
The market’s decision to move sideways instead of staging a relief rally appears to stem from concerns about the “delayed impact” of the energy shock caused by the Iran conflict. Experts note that the recent surge in oil prices, not yet reflected in the February data, could fuel inflation in the coming months, weighing on sentiment.
Attention is now turning to next week’s U.S. Federal Reserve (Fed) interest rate decision meeting. While a rate hold is widely expected, whether Bitcoin can reclaim the $70,000 level may depend on whether Fed Chair Jerome Powell adopts a hawkish or dovish stance regarding rising oil prices and the future inflation path.
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