Bitcoin fell 1.8% on February 12 after US inflation data exceeded expectations, hitting its lowest point in nine days. The Consumer Price Index (CPI) for January reported a 3% year-over-year increase, retesting the $94,200 support level. The stock market mirrored this downturn, with S&P 500 futures erasing prior gains, reflecting fears around broader market sentiment and contagion risks. Despite short-term trader caution linked to Bitcoin's 40-day correlation of 65% with the S&P 500, many still see Bitcoin benefiting from higher inflation in the long run. Additional pressures arose from SoftBank's substantial Q4 loss, prompting a shift to safer assets, alongside declining profitability in Bitcoin mining due to high energy costs. The Hashrate Price Index indicated that many miners could struggle to maintain operations if conditions worsen, potentially impacting network security. Overall, while macroeconomic factors have influenced investor sentiment, many still see Bitcoin as maintaining its value above $95,000 amid institutional interest.

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