Strategist: Lowered Fed Rate Cut Expectations and Profit-Taking Drive Continued Bitcoin Correction

According to Jinse Finance, Bitcoin has seen a slight rebound but remains at a low level overall, after briefly dropping to a two-and-a-half-week low the previous night. Joel Kruger, a strategist at LMAX Group, stated in a report that Bitcoin has been in a “correction mode” since hitting an all-time high last week. He pointed out that this is mainly due to higher-than-expected U.S. wholesale inflation data, which has dampened market expectations for a Federal Reserve rate cut. Kruger also mentioned that part of the sell-off may be related to short-term accounts taking profits, and it could also be linked to recent comments from the U.S. Treasury Secretary—namely, that the country’s strategic Bitcoin reserves will not be expanded through additional purchases.