According to a report from the US Bureau of Labor Statistics, the Consumer Price Index (CPI) rose at a faster pace than analysts had expected. This led investors to lower their expectations for interest rate cuts this year, causing the price of Bitcoin (BTC) to drop nearly 2% to $67,500 during the US morning session.
This market downturn was reflected across multiple asset classes, but Bitcoin gradually recovered all losses and experienced a bounce of nearly 5% after hitting a low point, surpassing $70,000 and outperforming US stocks and gold. As of the time of this article’s publication, the trading price of Bitcoin stands at $70,830.
QCP Capital, a digital asset hedge fund, stated that this rebound demonstrates potential demand for Bitcoin and investors see the dip as a buying opportunity. In its Telegram update, QCP wrote: “Reflexivity Research co-founder Will Clemente on the X platform suggests that the increasing levels of US debt are more important for the overall situation than individual CPI figures. The most likely scenario is that policymakers will allow inflation rates to exceed the 2% target to address the debt problem. Clemente added, ‘Bitcoin is insurance against this situation.'”
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