Here is the reason for the low prices of Litecoin, Shiba Inu, Solana and Bitcoin

Bitcoin and other ALTCOIN prices were traded on Wednesday after the United States released the most hot consumer inflation data.

Bitcoin (BTCIt decreased by 3 %, while other popular altcoins have seen more severe decreases. Litecoin (Ltc) It was one of the worst coins, as it has decreased more than 11 % in the past 24 hours.

Shaiba Eno (Gray) And Solana (TellerIt decreased by more than 5 %, while the total market value of all cryptocurrencies decreased by 3 % to $ 3.11 trillion.

American inflation increased in January

The main incentive for sale was a report that shows that inflation in the United States rose in January, a trend that might continue this month. The main consumer price index increased from 0.4 % in December to 0.5 % in January, which exceeds the average estimate 0.5 %. This increase is translated into an annual increase of 3.0 %, which is the highest level in several months.

The basic consumer enlargement increased from 0.2 % to 0.4 % on a monthly basis and from 3.2 % to 3.3 % annually.

These numbers prompted a decrease in futures futures, with the decrease in the Dow Jones and Nasdaq 100 indicators more than 400 points. American bond revenues increased, as revenues increased for 10 years and 30 years to 4.63 % and 4.82 %, respectively.

The market reaction was mainly driven by expectations of high interest rates for a longer period. In a statement on Tuesday, Federal Reserve Chairman Jerome Powell reported that the Federal Reserve was not in a hurry to reduce rates, noting that inflation is constantly high. Federal Reserve official, Beth Hamak, chanted a similar position, noting that future average decisions should rely on a further decrease in inflation. she He said:

“As long as the labor market is still healthy, I am looking for broad evidence that inflation is sustainable to 2 % before controlling the policy.”

The effect of inflation on bitcoin, Sheba Eno, Solana, and other altcoins

High inflation affects bitcoin and other Altcoins such as Solana and Shiba Inu due to its effect on interest rates and bond markets.

The Federal Reserve has a double mandate to maintain low inflation and stable labor market. It usually reduces rates when inflation decreases to stimulate consumption. However, with the consumer price index moved beyond the goal of 2 %, the probability of additional price cuts. At its last meeting, the Central Bank expected price discounts this year.

The printing of the hot red consumer index means that the Fed’s Reserve Bank may not reduce prices this year. Mohamed Al -Iryan hinted that the Federal Reserve may raise rates since then Trump’s tariff The situation will get worse.

Bitcoin and Altcoins are declining when the Federal Reserve raises prices, as shown in 2022. On the contrary, they often thrive when the Federal Reserve indicates a shift towards price cuts, as happened in early 2024.