Hotter-than-anticipated inflation data saw bitcoin (BTCUSD) briefly dip below $95,000 as investors' hopes of a rate cut by the Federಌal Reserve at its March meeting dimmed furth൲er.

The largest cryptocurrency by market cap recovered, trading close to $96,000 early afternoon Wednesday. Bitcoin-related stocks including Strategy (MSTR), Coinbase (COIN), Marathon Holdings (MARA) also mirrored that pattern.

However, the latest inflation print, along with uncertainty around tariffs that may further stoke inflation doesn't bode well for bitcoin as an investment. Higher rates imply greater yields on Treasuries, making them more attractive compared to assets such as bitcoin from both a return and riskiness perspective.

What's Going On With Bitcoin?

Bitcoin surged to a 澳洲幸运5官方开奖结果体彩网:new all-time high above $109,000 less than a month ago on January 20th, just prior to the inauguration of U.S. President Trump. Trump was expected to usher in a more friendly regulatory environment as a whole and has already issued 澳洲幸运5官方开奖结果体彩网:multiple executive orders related to digital assets. But that optimism hasn't translated into gains for investors as bitcoin price has since💎 rﷺemained volatile.

Some market watchers, including BlackRock's head of digital assets, have proposed considering bitcoin as a risk-off asset, that like gold performs well in times of uncertainty, as opposed to risk-on assets such as stocks and high-yield bonds that gain in times of upbeat market sentiment.

However, that thesis has come under question in recent months as the cryptocurrency 澳洲幸运5官方开奖结果体彩网:oftentimes moves in tandem with risk-on assets such as traditional stocks, 澳洲幸运5官方开奖结果体彩网:which also fell following today's inflation report.

Despite the recent price decline, inflows for the 澳洲幸运5官方开奖结果体彩网:spot bitcoin exchange-traded funds (ETFs) have been positive every week so far in 2025, according to Farside Investors. That said, spot bitcoin ETFs have seen a combined $243꧟ million in outflows so far this week.