The Bitcoin (BTC) reaction was sharply with the most hot American consumer price index (CPI), as it decreased from about 96600 dollars to less than 94,088 dollars. It is worth noting that BTC was already heading down due to the escalation of geopolitical tensions after the proposal of Donald Trump proposed Definitions On all aluminum and steel imports.
Bitcoin takes amid sudden inflation data
The latest inflation data in the United States was higher than expected, which led to declines in both stock markets and cryptocurrencies. Instead of the expected increase by 0.3 %, the consumer price index increased by 0.5 % in January, compared to the reading of 0.4 % in December.
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On an annual basis (YOY), inflation increased by 3 %, exceeding predictions of 2.9 %. For those who are not familiar, the consumer price index measures the average change in prices that consumers pay against goods and services over time and is a major indicator of inflation.
Meanwhile, Core CPI – which excludes food and energy costs – increased by 0.4 % in January, exceeding 0.3 % expected gains. YOY, the consumer price index is essential 3.3 %, higher than 3.1 % expected.
As a result, American stocks followed the decline in the Crypto market, as the future contracts for the stock index fell about 1 % after the report. On the other hand, the treasury revenue jumped for 10 years 10 basis points to 4.63 %, while the DXY index is strengthened by 0.5 %.
Can there be more from the negative side?
After the release of the consumer price index, the markets are now pricing in a fewer or perhaps not cuts in interest rates from the Federal Reserve for the remainder of 2025. male:
Paul Ashworth, Paul Ashworth, believes that the reduction this year appears to be increasingly unlikely. “With the tariffs of definitions, it is possible that you will keep the basic inflation of PCE near, or higher, 3 % this year now, the Federal Reserve will stand at least in the next 12 months.” Treasury revenue jumped on inflation data and continues its gains, with 10 years by 4.651 %, on the road up near mid -January.
The low risk of price discounts is additional risks in the negative aspect of assets of risk such as BTC. This is more uncertain, Federal Reserve Chairman Jerome Powell witnessed to Congress yesterday, stressing that the central bank price discounts are still not likely in the foreseeable future.
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Sharing encryption analyst in Hurrynft Visions On the BTC price movement after the release of CPI data. The analyst pointed out that although inflation remains 2 % higher than the Federal Reserve’s goal, Trump drives price discounts to motivate the economy.
Constant friction between the Federal Reserve and Trump may increase market fluctuations, which may push BTC to up to $ 92,000. In addition, the last American employment a report You only did a little to support the price of bitcoin.
On the contrary a report BTC may rise to between $ 145,000 to $ 249,000 in the Trump administration. At the time of the press, BTC is trading at $ 95,240, an increase of 0.8 % in the past 24 hours.
Distinctive image from Unsplash, Chart from TradingView.com
