The Bitcoin (BTC) price has plunged over 3% on Wednesday, falling below $56,000. This downturn has erased most of the gains seen in a promising rally since the start of the week.
The drop is primarily attributed to US Consumer Price Index (CPI) data, which has dampened hopes for a 50 basis points Federal Reserve rate cut.
Investors are now speculating on Bitcoin's next moves in light of these developments.
