Bitcoin Falls Below $65,000 as Inflation Fears Rattle Crypto Market

▲ Bitcoin (BTC) Decline / AI-Generated Image

Bitcoin (BTC) is showing a downward trend, falling below the $65,000 level as investors adopt a cautious wait-and-see approach ahead of the release of the U.S. Federal Reserve’s key inflation indicator.

According to Bloomberg on February 23 (local time), Bitcoin dropped below $65,000 ahead of the release of the Personal Consumption Expenditures (PCE) price index, which the Federal Reserve uses as a primary gauge of inflation. Investors are offloading risk assets such as cryptocurrencies amid concerns that a higher-than-expected reading could dampen expectations for interest rate cuts. The prevailing market tension is directly reflected in declining trading volumes and falling prices.

The PCE data set to be released this Friday is viewed as a key turning point for the short-term direction of the cryptocurrency market. Market participants are gripped by fears that persistent inflationary pressure, coupled with strong employment data, could prolong the Fed’s tightening stance. Experts warn that if inflation figures exceed market forecasts, further price correction for Bitcoin may be inevitable.

Stagnant capital inflows into spot ETF markets are also adding downward pressure. Major altcoins such as Ethereum (ETH) and Solana (SOL) have not escaped Bitcoin’s decline and are posting concurrent losses. Institutional investors appear to have paused capital deployment and shifted to a wait-and-see mode until macroeconomic uncertainties subside.

From a technical perspective, the key question is whether Bitcoin can establish support around the $64,000 level. Buyers are attempting to secure downside stability ahead of the inflation data release, but they have so far struggled to counter the momentum of sellers. The cryptocurrency market is engaged in a fierce tug-of-war to confirm a bottom, heavily influenced by global monetary policy shifts and inflation data trends.

Bitcoin’s price is expected to enter a new phase depending on the outcome of the inflation data. Investors are analyzing post-announcement volatility and tracking large whale movements as they consider portfolio adjustments. The economic data to be released this Friday is likely to serve as a critical inflection point for the digital asset market. Close monitoring of key support levels and trading volume changes, along with thorough risk management, will be essential.

Disclaimer: This article is for investment reference purposes only, and we are not responsible for any investment losses incurred based on it. The information provided should be interpreted solely for informational purposes.