Yoda's Wisdom: Bitcoin Falls as CPI Heats Up!

The Force is Against Bitcoin

Cryptocurrencies fell on Tuesday as the market reacted to a hotter than expected CPI reading. Bitcoin the most famous of them all dropped by 0.8% to $49,658.57. It seems the Force is not strong with this one.

A Plunge to the Dark Side

Bitcoin sunk as low as $48,372.89 giving investors a scare. Just when it reached the impressive milestone of $50,000 it took a plunge to the dark side. The Sith Lord of volatility strikes again.

Influenced by Monetary Policy Bitcoin Is

"Bitcoin is an aspirational store of value," says Jurrien Timmer Fidelity Investments' director of global macro. "Its price is in part influenced by monetary policy." Ah the Jedi mind trick of monetary policy at play.

Higher Inflation You Say?

The CPI report indicated a bigger increase in January than anticipated which sent yields higher and put pressure on risk assets. If inflation continues to run hotter than expected investors may experience longer term weakness. Hmm the dark side of inflation it is.

Crypto Rally's Future: Uncertain It Is

Despite Tuesday's pause Nico Cordeiro chief investment officer at Strix Leviathan believes the crypto rally will continue. However if inflation remains a threat the longer term outlook may not be so bright. A Jedi's path filled with uncertainty it is.

Bitcoin Hangs Above Key Level

Bitcoin remains above the $48,600 level a point of interest for investors and chart analysts. The hope is that multiple closes above it will support new highs above $50,000 and maybe even an all time high. The Jedi of resistance Bitcoin is.