Latest inflation data sink BTC and many Altcoins – Tradingview News

The American inflation report shocked more hot than the financial markets today (Wednesday), which led to sharp declines across cryptocurrencies and stocks. Bitcoin fell to less than 95,000 dollars after the release of the Consumer Prices Index (CPI) in January, which showed the climbing of inflation faster than expected.

The report disturbed hopes for reducing federal reserve prices in 2025, affecting bitcoin and most Altcoin prices. Bitcoin 2 % decreased today (Wednesday), trading of up to $ 94,000. Prices also decreased in Altcoin space, as Ethereum and XRP decreased by 6 % and 4 %, respectively, last week.

According to Bloomberg data, the consumer price index increased by 0.5 % in January, exceeding expectations of an increase of 0.3 % and accelerating 0.4 % in December. On an annual basis, inflation increased to 3.0 %, higher than 2.9 % expected.

Bitcoin price, source: Coinmarketcap falls

It surprises inflation in the upward trend

The basic consumer price index, which excludes food and energy prices, has increased higher than expected at 0.4 % per month and 3.3 % on an annual basis. The data indicated that inflationary pressure remains stubborn, and hopes for the difficult markets of the market in the short term.

The latest reading of the consumer price index reinforced fears that the Federal Reserve may carry interest rates for a longer period. Just one day before the report, Federal Reserve Chairman Jerome Powell reported that the central bank is still cautious about early price cuts.

January data also strengthened the Federal Reserve issue to maintain its restricted position. Market expectations of price discounts in 2025 dramatically.

Bitcoin’s decrease extends to less than $ 95,000 for a period of unification of prices that started after it exceeded $ 100,000 in November. Since then, the cryptocurrency has been stuck in limits between 91,000 dollars and 105,000 dollars, weighing it with total economic uncertainty.

Bitcoin faces price unification, Source: TradingView

Several factors contributed to the bitcoin struggle to maintain momentum. Keundsk reported that concerns about the economic transformations that depend on artificial intelligence in China, the possibility of commercial wars, and the federal reserve’s cautious stance on price cuts have played a role.

Turn away from speculative origins

High -face interest rates usually reduce the attractiveness of speculative assets such as Bitcoin, as investors seek safer returns in bonds and other fixed -income tools. In addition to the market concerns, analysts have warned that the latest inflation numbers do not reflect after the possible effect of the newly announced US definitions on Chinese imports.

With inflation remains stubborn than the Federal Reserve’s goal by 2 %, the markets may need to adapt to a long period of restricted monetary policy. This can compress the origins of risk, including bitcoin, in the short term.