Bitcoin Prepares for Big Moves Amid Fed Decision and US Inflation

Stay informed on Bitcoin's rollercoaster ride as US decisions rock the market. Understand how Fed rates and inflation impact your digital investments.

Jun 11, 2024 - 10:00
Jun 11, 2024 - 10:00
Bitcoin Prepares for Big Moves Amid Fed Decision and US Inflation
Bitcoin Prepares for Big Moves Amid Fed Decision and US Inflation

People all around the world are watching closely as the US government gets ready to make some big decisions about money. This includes what's known as the Federal Reserve's decision on interest rates and important info about how prices are going up in the US. But why should regular folks care? Well, if you're into Bitcoin, you might want to pay extra attention.

Here's the deal: a new report shows that Bitcoin, the digital money, is kind of like a see-saw with something called the US 10-year Treasury yield. That means when one goes up, the other tends to go down, and vice versa. And right now, that see-saw is tilting in a way that's making Bitcoin owners nervous.

Why? Because the US government's decisions about money could make Bitcoin prices jump around a lot. And on Tuesday, that's exactly what happened. Bitcoin lost some of its value, dropping by about 4.2% to its lowest point in a week. Other digital currencies, like Ether and Dogecoin, also took a hit.

Bitcoin had a good run a few months ago, hitting a record high in March. But lately, it's been struggling to reach those same heights again. And experts are saying the next day and a half could be really important.

Even though a lot of money has been pouring into Bitcoin investments lately, Monday saw a bit of a change. For the first time in almost three weeks, people started taking their money out instead of putting more in.

The US government's new numbers on how prices are going up are expected to be higher than what they're comfortable with. That might sound like a good thing, but it could mean they'll have to make it harder for people to borrow money. And that could be tough for Bitcoin, which has been doing really well lately.

Experts are split on what's next for Bitcoin. Some say it might keep going down for now, while others think it could bounce back in the long run.

But one thing's for sure: the next couple of days are going to be important for anyone with a stake in Bitcoin.

Also Read: Bitcoin Surge Reignites Interest in Cryptocurrency Market

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