Bitcoin and the broader cryptocurrency market faced a downturn as the US inflation rate exceeded expectations, leading to concerns about economic pressures on digital assets. On February 12, Bitcoin fell below $95,000 shortly after the US Consumer Price Index (CPI) data revealed a 3% inflation rate for January 2025, 0.1% higher than anticipated. The CPI report indicated a monthly increase of 0.5%, surpassing the Dow Jones forecast of 0.2%. This rise marked the largest monthly inflation increase in a year. In reaction, former President Donald Trump advocated for interest rate cuts, suggesting they would coincide with upcoming tariffs. However, Federal Reserve Chairman Jerome Powell stated there was no immediate need to adjust interest rates, emphasizing the current economic strength. Experts noted that while the unexpected CPI data may create a challenging backdrop for risky assets, it likely wouldn't dramatically affect the Fed's upcoming decisions, as they will primarily focus on unemployment figures and preferred inflation measures. The inflation spike was not unexpected, highlighting seasonal price increases in January.

Source đź”—