Bitcoin Reverses CPI-Induced Rally, Drops Below $22K

Bitcoin prices have recently climbed to almost $25,000 from $22,800 in hopes that inflation has peaked and the Federal Reserve will slow the pace of interest-rate increases in the U.S., as well as adopt looser monetary policies in 2023. Bond yields, however, have remained resilient in the wake of the Aug. 10 consumer price index (CPI) data, a signal that bitcoin traders might be wrong in making dovish assumptions.