Bitcoin falls before key US inflation report
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- Bitcoin slipped as traders increased bets on a US interest rate rise this month.
- Higher rate expectations pushed crypto prices lower before fresh inflation data.
- Markets are watching the inflation report for clues on the Federal Reserve's next move.
Bitcoin (CRYPTO:BTC) fell as traders increased bets that the US Federal Reserve could raise interest rates after this week's inflation report.
Markets became more cautious after stronger economic data lifted expectations that rates could stay higher for longer.
"The inflation report will be critical for the market's next move," analysts told CoinDesk.
Higher interest rates usually reduce demand for risk assets because borrowing becomes more expensive.
Ethereum (CRYPTO:ETH) and several other cryptocurrencies also traded lower ahead of the inflation data release.
Investors are watching the report for signs that inflation is slowing or remaining above the Federal Reserve's target.
The inflation figures could influence interest rate expectations and drive short-term moves across cryptocurrency markets.
At the time of reporting, Bitcoin price was $62,660.63.
