Bitcoin faces a two-week Fed trap as inflation rewrite threatens to upend rate cuts

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Over the next two weeks, markets face a "Fed trap" as upcoming inflation revisions could undermine expectations for Federal Reserve rate cuts. If revised inflation prints higher-than-expected, the Fed may delay or scale back cuts, keeping rates higher for longer. That scenario would likely boost yields and the dollar and put downward pressure on risk assets, increasing short-term volatility for Bitcoin. The key implication is that Bitcoin's rally premised on imminent rate cuts is at risk and traders should brace for heightened price swings.

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