Bitcoin

Bitcoin Shrugs Off CPI Data as Daily BTC Price Drops Over 3%

Bitcoin continued to slide on September 11, with markets reacting negatively despite positive U.S. macroeconomic data. BTC fell below $56,000, shedding over 3% as the U.S. Consumer Price Index (CPI) report for August showed inflation slowing, in line with expectations — 0.2% month-on-month and 2.5% year-on-year, according to the U.S. Bureau of Labor Statistics.

The CPI data seemed to calm inflation concerns, with the smallest annual increase since February 2021. Meanwhile, CME Group’s FedWatch Tool indicated an 85% chance of a 0.25% rate cut at the Federal Reserve’s meeting on September 18, up from 66% the day before. However, Bitcoin traders showed little optimism. Trader Roman anticipated a retest of $55,000, while liquidity was noted around $54,000. CoinGlass data also pointed to increasing sell orders above $57,000.

While short-term sentiment remained bearish, some longer-term charts, such as those from trader Titan of Crypto, showed BTC/USD holding key support levels.

BTC Price Action Signals “Risk-Averse Environment”

At the same time, on-chain data from CryptoQuant highlighted that Bitcoin had decoupled from gold, with BTC declining even as gold reached new highs. This negative correlation typically suggests a “risk-averse environment” where investors prefer safer assets like gold. CryptoQuant also noted that both Bitcoin and the U.S. dollar were weakening simultaneously, an unusual occurrence indicating broader market uncertainty and investor caution.