Bitcoin’s decline reveals its fragile inflation hedging capabilities

Data from the U.S. Consumer Price Index (CPI) in March showed an annualized inflation rate of 3.5%, which exceeded expectations of 3.2%, and Bitcoin fell nearly 8%. Stronger than expected inflation has once again sparked concerns about the Fed's continued austerity policy, triggering widespread sell-offs of risky assets. Bitcoin’s daily trading volume on major exchanges soared by more than 25%, reflecting the increased volatility caused by investors’ reassessment of expectations for interest rate cuts.