**Bitcoin Dips Below $56K Amid Positive US Inflation Data**
Bitcoin (BTC) extended its losses on Sept. 11, dropping below $56,000 despite positive US inflation data. The Consumer Price Index (CPI) for August showed a modest 0.2% month-on-month increase and a 2.5% rise year-on-year, the smallest 12-month increase since February 2021.
- **Market Reaction:** BTC/USD fell over 3% as traders seemed unimpressed by the CPI data.
- **Federal Reserve:** CME Group’s FedWatch Tool indicated an 85% chance of a 0.25% rate cut at the upcoming Sept. 18 meeting.
- **Trader Sentiment:** Popular traders are eyeing support levels at $55,000 and $54,000.
- **Long-term Outlook:** Weekly charts still show some support, but Bitcoin's recent decoupling from gold suggests a risk-averse environment.
Stay tuned for more updates as the market reacts to these developments.