Disappointing U.S. CPI Data Sends Bitcoin Tumbling Below $95K

Bitcoin Flops as Inflation Roars: The Crypto Tailspin You Didn’t See Coming šŸš€šŸ’„”

Disappointing U.S. CPI Data Sends Bitcoin Tumbling Below $95K

What to know:

  • CPI came in šŸ”„ hotter than expected in January, much to everyone’s chagrin (or schadenfreude?).
  • Core CPI betrayed the optimism of economists hoping inflation would take a chill pill.
  • Bitcoin, ever the drama queen, nosedived below $95K faster than you can refresh your app.

January’s inflation came stomping in like a bad dinner guest, loud and uninvited, sending not just crypto but traditional markets into a whirlwind of “Oh no, not again šŸŒŖļø.”

The Consumer Price Index (CPI) decided it needed to make its presence felt, rising by a stubborn 0.5%, as if Decemberā€™s 0.4% and the forecasted 0.3% were mere whispers in a financial windstorm. On a year-over-year basis, CPI flexed its muscles at 3.0%, defying those who dared to hope for a demure 2.9%.

Core CPI, which supposedly ignores the madness of food and energy costs, didnā€™t miss a beat in its rebellion. It rose 0.4% in January, sneering at the expected 0.3%, because why not? The year-over-year figures? Oh, just 3.3% when everyone was mentally banking on 3.1%. Typical.

And Bitcoin? Ah, Bitcoin! Our beloved digital cowboy couldnā€™t handle it. Already on a shaky horse this week, the news had it plunging faster than a rock in a dry well, landing beneath the $95,000 marker with all the grace of a drunk bull in a china shop šŸƒšŸ’„.

Meanwhile, the U.S. stock index futures took a 1% hit because markets never like surprises unless they come with cake. The 10-year Treasury yield danced upward to 4.63%, gold took a 1% nosedive, and the dollar index flexed with a swagger, rising 0.5% like it had something to prove.

Oh, Bitcoin, you renegade! Remember when it brushed past $100,000 post-Trump election in November? Those were the days of champagne dreams and caviar wishes. Now it zigzags relentlessly between $90,000 and $109,000 like a wind-up toy in a maze. AI-analyzed fears from China, trade war murmurs, and inflation-headed-higher whispers have everyone on edge. And donā€™t even get us started on interest ratesā€”they feel like that one neighbor always borrowing sugar and never returning the favor.

Adding a cherry on this sundae of surprises, Federal Reserve Chairman Jay Powell dropped by Congress yesterday to remind everyone that rate cuts arenā€™t just off the tableā€”theyā€™re in another galaxy, unless the economy or inflation decides to throw a cosmic curveball.

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2025-02-12 16:48