Bitcoin Not Phased by Positive CPI Data, Drops below $60K

New US CPI data released this week and was expected to be positive and boost the crypto market. While the numbers did skew favorably, Bitcoin reacted to the news unexpectedly.

At first, Bitcoin’s price jumped to almost hit $62K, but then it quickly tumbled to a low of $58,034 (BTC/USD). The current price of the token is $59,018, a slight improvement from the sharp decline earlier this morning, but still not the good news that investors were anticipating.

The US Consumer Price Index showed that the analyst estimates were almost spot on. The mildly positive data helped inflation to tick downward to its lowest point in years. That could mean that interest rate cuts are more likely in the near future. The CPI increased 0.2% for the month and 2.9% from a year ago.

What Is Going on with Bitcoin?

Bitcoin is holding close to the $60K mark for now, and it may continue to do so despite new economic data. Jobs data could shift the coin in one direction or another, but it is baffling to many investors that positive CPI data has actually caused the coin to drop.

It is especially odd considering that the stock market has jumped after the CPI data came out, with most of the major stock indices reporting more than 1% increases for today.

Bitcoin is having trouble moving back toward its all-time high, particularly after the setbacks it has experienced with inflation concerns and large asset transfers over the past few months. With even the CPI looking good but not able to shift Bitcoin positively, investors should be concerned that Bitcoin will be able to set a record high anytime soon. Consumer confidence in the coin may be lower than anticipated, and we could be seeing a decentralized currency that is harder to predict than expected.