Bitcoin has fallen below the $69,000 level on Wednesday, ahead of the release of U.S. inflation data.

The U.S. Bureau of Labor Statistics is set to release March 2024 Consumer Price Index, CPI, data later today. Inflation is forecast to rise at an annual pace of 3.4% in March, this would be at a faster pace than the 3.2% increase recorded in February.

However, if the data shows a soft inflation reading for the month of March, this could influence the potential for a rate cut by the U.S. Federal Reserve in the first half of 2024. 

According to the CME's FedWatch tool, interest rate traders are 93.7% certain that the Fed will hold rates steady in May. However, the market now expects the chance of a rate cut at the June Federal Open Market Committee meeting to be 50.8%. 

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