Bitcoin has been struggling with volatility in recent weeks as investors have taken a cautious approach due to concerns about monetary policy tightening and its potential effects on risky assets.
The most recent U.S. Federal Reserve’s hawkish stance may be maintained for longer than expected, according to the Consumer Price Index (CPI) data for January, released last week, which showed inflation continuing above the target of 2 percent.
Since higher interest rates typically reduce investor appetite for speculative investments, this has cast a shadow over Bitcoin and other risk-sensitive assets.