A decline in U.S. consumer inflation expectations has restrained the dollar rally as traders continue to anticipate multiple Federal Reserve rate cuts this year. The New York Fed’s Survey of Consumer Expectations revealed that U.S. consumers’ short-term inflation projections dropped to the lowest level in nearly three years in December. The market is pricing in around 135 basis points worth of easing for the Fed in 2023, with a 60% chance of rate cuts starting in March. Meanwhile, bitcoin maintains its position near its strongest level since April 2022, fueled by growing expectations of imminent approval for spot bitcoin exchange-traded funds (ETF) by the Securities and Exchange Commission.