Bitcoin Slides To $94,000 After CPI Surprise
Bitcoin (BTC) responded sharply to today’s more than expected U.S. Consumer Price Index (CPI) report, falling from $96,600 to as low as $94,088. It is worth noting that BTC has fallen due to the escalation of geopolitical tensions proposed by Donald Trump tariff On all aluminum and steel imports.
Bitcoin is sluggish amidst surprising inflation data
The latest U.S. inflation data is higher than expected, triggering a decline in stock and cryptocurrency markets. The CPI in January did not exceed 0.3% expected, but reads increased by 0.5% in December.
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On a year-on-year basis, inflation rose 3%, surpassing the 2.9% forecast. For those unfamiliar, CPI measures the average price change in consumers paying for goods and services over time, a key indicator of inflation.
Meanwhile, Core CPI, which excludes food and energy costs, rose 0.4% in January, surpassing the expected 0.3% increase. Year-on-year, Core CPI climbed 3.3%, higher than the forecast of 3.1%.
As a result, U.S. stocks followed the sluggish cryptocurrency market, with stock index futures falling by about 1% after the report. On the other hand, the 10-year treasury yield jumped 10 basis points to 4.63%, while the US dollar index (DXY) strengthened by 0.5%.
Will there be more shortcomings?
After the release of the CPI, the market now has fewer prices or may drop from the remaining time in 2025 or may drop from the Fed. Famous:
Paul Ashworth of Capital Economics believes that this year’s cuts look increasingly unlikely. “As tariffs could bring PCE inflation close to or above 3% this year, the Fed will stand for at least the next 12 months.” Fiscal yields rose inflation data and maintained earnings for a 10-year period of 2018. 4.651%, this is the road to the highest closing price since mid-January.
The reduced probability of lowering the rate brings additional downside risks to risky assets such as BTC. Federal Reserve Chairman Jerome Powell testified before Congress yesterday, stressing that central bank cuts remain impossible for the foreseeable future.
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Crypto analyst prarrynft share opinion After the release of CPI data, the price of BTC changed. Analysts noted that while inflation still exceeds the Fed’s 2% target, Trump is pushing for cuts to stimulate the economy.
The ongoing friction between the Fed and Trump could increase market volatility and could further reduce BTC to $92,000. In addition, recent jobs in the United States Report There is almost no price that supports Bitcoin.
But, on the contrary, the recent encryption Report Assuming that under the Trump administration, BTC could soar between $145,000 and $249,000. At press time, BTC traded at $95,240, up 0.8% over the past 24 hours.
Featured images from Unsplash, charts from TradingView.com
