Bitcoin Briefly Drops Below $95,000 As Inflation Fears Reignite | Global News Avenue

Exceeding inflation data saw Bitcoin (btcusd) briefly fell below $95,000 as investors hoped the Fed’s cut rate cuts further at its March meeting.

The largest cryptocurrency by market capitalization has recovered, nearly $96,000 Wednesday afternoon. Bitcoin-related stocks include strategies (Mstr), Coinbase (coin), Marathon Holdings Company (Mara) also reflects this pattern.

But the latest inflation prints, and uncertainty about tariffs that could further boost inflation, don’t bode well for Bitcoin as an investment. From a return and risk perspective, higher interest rates mean higher yields in the treasury, making it more attractive compared to assets such as Bitcoin.

What’s wrong with Bitcoin?

Bitcoin surges New all-time high above $109,000 Less than a month ago, on January 20, before U.S. President Trump took office. Trump is Expected A more friendly regulatory environment has been launched Multiple execution orders Related to digital assets. But with Bitcoin price since then, this optimism has not translated into investors’ returns.

Some market observers, including Blackrock’s head of digital assets, have proposed to treat Bitcoin as adventure Like gold, assets in times of uncertainty also perform well, rather than the growth gains gained by risky assets such as stocks and high-yield bonds in optimistic market sentiment.

However, as a cryptocurrency, the paper has been questioned in recent months Move at the same time often Have risks – Continuous assets, such as traditional stocks, It dropped, too Follow today’s inflation report.

Despite the recent price drop, Funds for Spot Bitcoin Exchange According to Farside Investors, (ETF) has been positive every week so far in 2025. That is to say, so far this week, there has been a total of $243 million in spot Bitcoin ETFs.