Bitcoin Slides Toward $70K as Fed CPI Forecast Rises
SkimNews Take
A higher-than-expected inflation print could trigger a cascade of selling by both algorithmic and discretionary traders, as the Fed's stance on rate cuts directly impacts risk asset valuations.
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- Cleveland Federal Reserve nowcast projects April headline CPI at 3.56% YoY (up from 3.3% in March) and monthly CPI at 0.45%, with core CPI at 2.56% YoY.
- Bitcoin is charting a rising wedge on its daily chart, a bearish formation that historically precedes price drops toward $70,000.
- Strategy has halted its Bitcoin purchases, and its STRC preferred stock trades below its $100 par value, limiting its ability to raise fresh capital for further Bitcoin buys.
- Analyst Killa notes that the 78.6K weekly open is a key support level; a loss of that level sets the next downside target at 74–75K.
- Bitcoin previously rallied more than 15% after the March CPI report showed headline inflation rising to 3.3% from 2.4% in February, but current institutional backing is weaker.
Why it matters: Institutional investors like Strategy risk losing buying power as its capital‑raise ability wanes, while traders could see Bitcoin dip to $70K, tightening liquidity and prompting risk‑off moves across crypto markets.
