Bitcoin fell along with stocks after news that the U.S. consumer price inflation report for January came in hotter than expected.
According to CoinGecko, Bitcoin price has fallen 2% in the last 24 hours and is currently trading at $48,747.
A U.S. Labor Department report showed inflation was higher than expected last month, rising 3.1% in the 12 months through January. As a result, risk assets such as U.S. stocks fell as investors pondered that the Federal Reserve might delay interest rate cuts in the coming months.
The S&P 500 and Nasdaq 100 indexes both lagged 1% after the report declined Tuesday morning.
High interest rates have caused investors to avoid assets such as cryptocurrencies and technology stocks. But the Federal Reserve has said it will cut interest rates this year, leading to a rally in the stock market and rising prices for digital assets.
Yesterday, Bitcoin (BTC) crossed the $50,000 threshold for the first time since December 2021. It reached a high of $50,256 before falling again.
The reason for the bullish trend is that large investors are quickly putting their money into the newly approved BTC exchange-traded funds (ETFs).
The Securities and Exchange Commission approved 10 spot BTC ETFs in January after a decade of rejections.
Such investment instruments, traded on exchanges, allow traditional investors to access cryptocurrencies.
Despite BTC's 24-hour decline, it is still up almost 14% over the past seven days.
Edited by Stacy Elliott.
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