FED's Preliminary Inflation Data Announced, Bitcoin Dropped!

The Federal Reserve's preliminary inflation data has just been announced, and Bitcoin's price has taken a hit, dropping over 3% to $83,971. This downturn is largely due to the core PCE inflation rate coming in at 2.8%, slightly above expectations .

Analysts are now warning that if Bitcoin breaks below the critical level of $83,400, it could lead to a further decline towards $80,000 or lower. This level is crucial because it has historically served as a support level for Bitcoin's price .

Key Factors Influencing Bitcoin's Price:

Core Inflation Concerns: The higher-than-expected core PCE inflation rate has sparked concerns about stagflation in 2025, which could impact Bitcoin's price.

Federal Reserve's Rate Cuts: The inflation data may delay the Federal Reserve's rate cuts, which could negatively impact Bitcoin and other risk assets.

Technical Levels: Bitcoin's price is under pressure, with the $84,000 support level being tested. A break below this level could lead to a decline towards $78,000-$80,000 .

Keep in mind that the cryptocurrency market is highly volatile, and prices can fluctuate rapidly. As always, it's essential to do your own research and consider multiple sources before making any investment decisions.#Fed $BTC