Investing.com-- Bitcoin price retreated on Wednesday as anticipation of key U.S. inflation data saw traders remain largely averse towards highly speculative, risk-heavy assets.
Market sentiment appeared to be more geared towards safe havens such as the dollar and gold, with the yellow metal hitting a record high this week.
Bitcoin on the other hand fell 2.4% over the past 24 hours to $69,373.7 by 01:51 ET (05:51 GMT), tracking weakness in most other risk-driven assets.
A surge in commodity prices- specifically oil and metals- also drove focus away from the token, as markets bet that improving global economic conditions in the coming months will support commodity demand.
Crypto prices today: CPI awaited for more rate cues
Focus was now squarely on U.S. consumer price index data due later on Wednesday, which is expected to show inflation remaining sticky through March.
The trend gives the Federal Reserve less impetus to begin cutting interest rates- a scenario that bodes poorly for speculative assets such as Bitcoin. The token, along with the broader crypto market, tend to thrive in a low-rate, high-liquidity environment.
Losses in Bitcoin spilled over into other tokens. World no.2 crypto Ethereum fell 4.2%, while XRP and Solana lost 1.1% and 3.6%, respectively.
Beyond the inflation data, the minutes of the Fed’s March meeting are also on tap. While the Fed did say it will cut rates by 75 basis points, a slew of officials questioned this outlook after the meeting, especially in the face of sticky inflation.
Bitcoin halving remains in focus
Still, losses in the world’s largest cryptocurrency were limited in anticipation of the halving event, which is set to happen around April 20.
The event, which will take place with the generation of block no. 840,000 on the Bitcoin blockchain, will see the rate at which new Bitcoin is mined slashed in half.
The event is expected to further the narrative that the relative scarcity of Bitcoin will push up its price.
Bitcoin had surged to a record high of over $73,000 earlier in 2023, boosted chiefly by increased capital flows after the U.S. approval of spot exchange-traded funds.
But recent data showed that these capital flows were slowing, raising some doubts over just how much momentum Bitcoin still retained.