Bitcoin's price fell sharply below $95,000 after U.S. inflation rates for January exceeded expectations. The Consumer Price Index (CPI) increased by 0.5%, higher than the anticipated 0.3%, while the year-over-year CPI rose by 3.0%, surpassing estimates of 2.9%. The core CPI, which excludes food and energy, also rose to 0.4% for January, disappointing those predicting a slowdown. Following the report, Bitcoin's price dropped significantly, as it had been fluctuating between $90,000 and $109,000 for over two months. Factors such as concerns over trade wars, AI-driven apprehensions regarding China, and elevated interest rates due to persistent economic strength and inflation have contributed to the price decline. Federal Reserve Chairman Jay Powell has indicated that further rate cuts are unlikely unless significant economic downturns occur. This scenario reflects ongoing volatility in both cryptocurrency and traditional markets in response to economic indicators.

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