#LowestCPI2021 đ *Why did Bitcoin fall below $60K despite falling US inflation?*
The decline in inflation data in the USA led to a drop in Bitcoin's value. đž Before the data, the largest cryptocurrency was trading at $61,000, but it dropped by about $2,500. đ
đșđž *In the USA, the CPI data for July showed a 2.9% annual increase, bringing inflation below 3% for the first time in 3 years.*
đ While the figures met expectations and were even lower than some institutions predicted, they didn't seem to please the market. Bitcoin dropped by $2,500, reaching $58,800. đ”
đ» *The expectation of a 50 basis point rate cut has disappeared.*
The main reason for the decline seems to be the Fed's interest rate decision, which was almost certain for September. đ The probability of a 50 basis point cut, which was over 50% before the inflation data, fell to 41% after the announcement. đ The likelihood of a 25 basis point cut is now around 58%.
đ *This expectation didn't just lower Bitcoin; US markets were also affected.*
The S&P 500 dropped below 5500, while the Nasdaq fell below 19,000. đ Tesla lost 2.6%, Coinbase 1.8%, and MicroStrategy 3.3%. $BTC
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