The post Bitcoin Feels the Heat as Treasury Yields Climb and Dollar Strengthens appeared on BitcoinEthereumNews.com.

TLDR Treasury yields hit 4.8%, reaching late 2023 highs, while December CPI is expected to rise to 2.8% from 2.7% in November Federal Reserve’s January 29 meeting has a 97.3% probability of maintaining current rates at 4.25%-4.5% Bitcoin trades at $94,840, down 7% for the week and 12.5% below its December 2024 high of $108,268 December job market added 256,000 new positions, exceeding forecasts and showing continued strength Dollar index reached November 2022 levels, pushing euro to parity and suggesting tighter financial conditions The Federal Reserve approaches its January 29 meeting amid complex market conditions, as Bitcoin retreats from recent highs and Treasury yields climb to levels not seen since late 2023. The meeting comes as markets show a clear expectation of steady rates, with current forecasts indicating a 97.3% probability that the Federal Reserve will maintain rates at 4.25%-4.5%. Bitcoin, the leading cryptocurrency, currently trades at $94,840, marking a 7% decline over the past week. This represents a 12.5% drop from its all-time high of $108,268, reached on December 17, 2024. The cryptocurrency’s price movement reflects broader market uncertainty as investors process new economic data. December’s Consumer Price Index (CPI) data adds another layer to the complex economic picture. Forecasts suggest inflation will rise to 2.8% from November’s 2.7%, marking the third consecutive monthly increase. This would represent the highest inflation rate since July 2024, potentially influencing the Federal Reserve’s decision-making process. Core CPI, which excludes volatile food and energy prices and serves as a key metric for the Federal Reserve, is expected to show a 0.2% increase. This would maintain the annual rate at 3.3%, a level that remains above the Federal Reserve’s target. The job market continues to display remarkable strength, with December payroll data revealing 256,000 new jobs added to the economy. This number exceeded market…

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Filed under: News - @ January 14, 2025 5:22 pm