On March 12, Bitcoin experienced a classic sell-off following a positive US inflation report, which showed a slowdown in inflation. The price peaked at $84,437 before dropping to $82,400 as Wall Street opened. Analysts noted that this volatility was common in the crypto markets, with some seeing cautious optimism in Bitcoin’s performance. However, concerns grew as institutional investors pulled out a significant $153.87 million from Bitcoin ETFs, signaling wariness among large players. The current support level is around $82,000, with traders emphasizing the need to rise above key moving averages to regain bullish momentum. Overall, Market sentiment remains cautious as inflation concerns persist.
Bitcoin Prices Experience Volatile Sell-Off Amid US Inflation News
Bitcoin (BTC) faced a significant sell-off on March 12, mimicking the classic behavior of Wall Street traders. This Market shift came despite an encouraging report on US inflation, which indicated a slowdown that many had welcomed.
Bitcoin reached a high of $84,437 on Bitstamp but quickly reversed, landing around $82,400 as trading pressures mounted. The US Consumer Price Index (CPI) for January showed a lower-than-expected reading at 2.8%, suggesting that inflation might be on the decline. Notably, core CPI fell to 3.1%, a sign that inflation is indeed cooling.
However, optimism regarding inflation quickly faded as aggressive selling returned to the crypto Market. Many traders are now watching Bitcoin’s price movements closely to determine whether it will stabilize or face further dips.
Key Insights into Bitcoin’s Market Performance
- CME Gap Analysis: Trader Rekt Capital observed that Bitcoin’s latest daily close indicates an exit from a recently filled CME gap, which traders often see as a crucial short-term price influence.
- Support Levels: The focus is currently on critical support levels. According to analyst Daan Crypto Trades, Bitcoin needs to maintain above the Daily 200-day Simple and Exponential Moving Averages, currently around $83,550 and $85,650.
Institutional Caution in the Bitcoin Market
The day’s CPI results might also influence the Federal Reserve’s upcoming interest rate decisions. QCP Capital noted that despite the encouraging inflation data, macroeconomic concerns are pressing.
Notably, Bitcoin ETFs have seen significant outflows, totaling approximately $153.87 million, particularly driven by Grayscale’s Bitcoin Trust. This shift highlights a growing caution among institutional investors, which could impact Bitcoin’s price trajectory in the coming days.
In summary, while Bitcoin is showing signs of resistance and support at certain levels, Market volatility remains high. Traders and investors must remain vigilant as both inflation data and institutional behavior shape Bitcoin’s future.
This article does not provide investment advice. Always conduct your own research before making any trading decisions.
Tags: Bitcoin, BTC, cryptocurrency, inflation, trading, markets, ETFs
What is happening with Bitcoin and US sellers?
Recently, Bitcoin has become more popular as inflation in the US showed its first drop since mid-2024. This means that people might be looking into Bitcoin as a way to protect their money from inflation.
Why is Bitcoin gaining attention?
With prices rising for many goods, people are worried about how inflation affects their money. Bitcoin is seen as a potential safe haven, making it more interesting for both investors and everyday buyers.
What does CPI inflation mean?
CPI stands for Consumer Price Index. It measures how prices for everyday items change over time. A drop in CPI inflation suggests that prices are either rising more slowly or may even be falling, which can change how people feel about spending money.
How does inflation impact Bitcoin’s value?
When inflation drops, people think about different ways to invest their money. If more people buy Bitcoin, its value can go up. However, if Bitcoin starts to feel less like a safe bet, its value might drop.
Should I invest in Bitcoin now?
Investing in Bitcoin can be risky. If you are thinking about it, make sure to do thorough research and understand the Market. It’s good to think about your financial goals and how much risk you are willing to take.