Hassan Maishera
TL;DR
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Bitcoin slightly dropped below the $26k level following the CPI data announcement on Tuesday.
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Investors are now keenly awaiting the Fed rate hike decision later today.
Bitcoin Dips Below $26k Ahead Of Interest Rate Decision
Bitcoin, the world’s number one cryptocurrency by market cap, underperformed over the last 24 hours. The poor performance came after moving past the $26k level earlier this week.
Bitcoin dropped to the $25,800 level a few hours ago following the CPI data announcement. The U.S. Bureau of Labor Statistics announced on Tuesday that the CPI had risen 4%, better than the projected 4.1% and then April’s 4.9%.
Market analysts believe that the Federal Reserve will most likely not raise interest rates when it announces its decision later today. With inflation figures declining, the Fed is expected to pause its rate hike, allowing investors to flood back into the financial markets.
Bitcoin continues to struggle to gain any momentum past the $26k region due to the ongoing lawsuits against Binance and Coinbase in the United States. Binance.US and SEC are set to work on a deal to avoid the cryptocurrency exchange’s asset freeze.
Bitcoin is down by 1% in the last 24 hours after performing well earlier this week. At press time, Bitcoin is trading at $25,847. Meanwhile, the total cryptocurrency market cap continues to stay above the $1 trillion mark.
