👏Bitcoin Price Chops Either Side of $64,000 Following Latest US Inflation Report – Here’s What You Need To Know ☄️The Bitcoin (BTC) price chopped either side of the $64,000 level on Friday in the wake of the latest US inflation data report, which showed the Core PCE index rising 0.3% MoM in March, in line with the market’s expectations. 🔥A MoM inflation rate of 0.3% translates to an annualized inflation rate of around 3.6%. That’s well above the Fed’s 2% inflation target, pointing to still uncomfortably high inflation in the US. 🕯Economists highlighted that stubbornly high housing and utility inflation could keep MoM price pressures elevated for some time. ⁉️That will likely encourage the Fed to keep interest rates higher for longer. Given the strong data reports in recent weeks (manufacturing PMI, jobs, etc.), it’s no surprise to see the DXY and US bond yields near multi-month highs. ➡️The unfavorable macro backdrop, where markets are pricing stickier inflation and a Fed that is more reluctant to cut rates signals a near-term headwind for Bitcoin. 💸Bitcoin has historically performed better in an environment of falling US yields and a falling US dollar. 💎There is some evidence that the US economy is slowing, however. This week’s flash PMI report showed weakness in economic activity in April. And the latest GDP numbers for Q1 were a disappointment. ⚡️Until that weakness translates into lower inflation, the Fed will likely remain cautious about rate cuts, which will remain a headwind for BTC.