Bitcoin Dips to $95,000 Amid Rising US Inflation

In January, the US Consumer Price Index (CPI) increased by 0.5%. Annually, inflation accelerated to 3%.

The figure exceeded the forecast of 2.9%, according to data from the US Bureau of Labor Statistics (BLS).

The core CPI, excluding food and energy prices, rose 3.3% over 12 months, compared to expectations of 3.1%. The index increased by 0.4% for the month, against a forecast of 0.3%.

? Just In: January US CPI annual inflation rises 3.0%, above expectations for 2.9%.

Core CPI inflation increased 3.3% Y/Y, higher than forecasts for a gain of 3.1%. pic.twitter.com/xREyjJpCry

— Jesse Cohen (@JesseCohenInv) February 12, 2025

Housing prices rose by 0.4% in January, contributing nearly 30% to the overall increase. The CPI for energy and gasoline rose by 1.1% and 1.8%, respectively.

Swap and options markets favour the scenario of maintaining the US Federal Reserve’s key rate range at 4.25-4.5%. The probability of this scenario is estimated at 97.5%.

Bitcoin prices reacted to the BLS inflation data by dropping to around $94,000. At the time of writing, the asset’s price rebounded to near $95,000.

All major cryptocurrencies by market capitalization were in the red. Most altcoins showed a deeper correction compared to the flagship.

The stock market also reacted with a downturn. The Dow Jones index lost 1% after the start of trading in the US, and the S&P 500 fell by approximately 0.8%.

The market after CPI… ? $SPY pic.twitter.com/hTmltnQ4Yb

— LuxAlgo (@LuxAlgo) February 12, 2025

Crypto blogger Sheldon The Sniper noted that the last five US inflation data releases almost coincided with Bitcoin’s local bottoms.

#CPI marked the last x5 bottoms for $BTC and possibly even more from further back

Prepare! pic.twitter.com/D0flqOFORJ

— Sheldon The Sniper (@Sheldon_Sniper) February 12, 2025

“Prepare!” he wrote.

Experts at Standard Chartered have assessed the current market environment as favourable for Bitcoin and the digital asset sector as a whole.