Bitcoin is currently priced at around $66,888, and today's decline may be due to market expectations for important economic data to be released soon.
In particular, market participants are concerned about the U.S. CPI data, which is an important indicator of inflation and will be released at 8:30 p.m. tomorrow.
If the CPI data shows higher-than-expected inflation, it may change market expectations for the Fed's monetary policy. Investors are concerned that strong inflation data may prompt the Fed to take a more hawkish stance, reduce expectations for rate cuts, and even increase the possibility of rate hikes. In addition, the market is also watching Fed Chairman Powell's speech after the data release for clues on the future direction of monetary policy.
Therefore, some big players may choose to exit the market before uncertainty increases, and this strategic reduction in positions may trigger market panic and price declines. Market fluctuations are usually closely related to the Fed's policy trends, especially expectations for the timing and magnitude of future rate cuts.
In this context, investors may take a more cautious attitude and wait for the release of CPI data and the Fed's policy signals before making investment decisions.
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