US Inflation Exceeds Forecasts, Bitcoin Declines

In January, the US inflation index reached 3.1%. This figure surpassed the forecast of 2.9% but was an improvement over the previous month’s 3.4%.

Experts noted that a slower pace towards the 2% target could influence the Fed’s policy on the key interest rate.

BREAKING: Prediction markets are now pricing-in just 4 rate cuts in 2024 after January CPI inflation hits 3.1%.

This is a huge slide in expectations as markets were pricing-in 6 rate cuts just over a month ago, according to @Kalshi.

The most recent Fed guidance was for 3… pic.twitter.com/3TR8Vs1eIz

— The Kobeissi Letter (@KobeissiLetter) February 13, 2024

In prediction markets, expectations have reduced to four rate cuts in 2024, down from six just a month ago.

The likelihood of the regulator deciding to cut rates in March is estimated at no more than 10%.

Bitcoin reacted with a decline following the release of the US Bureau of Labor Statistics’ inflation data.

At the time of writing, the cryptocurrency had fallen by approximately 1.8% following the press release, failing to maintain the $49,000 level.

Earlier, former BitMEX CEO Arthur Hayes predicted a drop in Bitcoin to $35,000 due to various factors, including Fed policy and “excessive” inflation.