Bitcoin Rally Cools as Investors Digest Inflation Data, Oil Clouds Outlook

Bitcoin’s rally on Tuesday cooled as investors digested weaker-than-forecast U.S. inflation data and rising oil prices, according to CoinDesk. The largest cryptocurrency was still 3% higher over 24 hours but had dropped 0.5% since midnight, with ether (ETH) up 4.7% also pulling back. Polymarket odds of a Federal Reserve rate increase plunged to 6.7% from 34%, with bettors pricing a 93% chance of no change. ‘Crypto’s reaction shows the market is becoming more selective in interpreting macro signals,’ said Markus Levin of XYO. Fed Chair Kevin Warsh cautioned one favorable report wasn’t enough, while Brent crude above $85 kept inflation risks elevated. Producer prices are due later today.