Bitcoin Slides To $94,000 After CPI Surprise – Will The Downtrend Continue?

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bitcoin-usd/”>BITCOIN: THE ULTIMATE ROLLERCOASTER RIDE 🎠

Bitcoin Slides To $94,000 After CPI Surprise – Will The Downtrend Continue?

Well, isn’t this just peachy? Bitcoin (BTC) took a sharp nosedive after the US Consumer Price Index (CPI) report came in hotter than a freshly toasted marshmallow. It plummeted from around $96,600 to a mere $94,088. Who needs a rollercoaster when you have cryptocurrency market fluctuations, right? 🎢

Bitcoin Slumps Amid Surprising Inflation Data

It seems the latest US inflation data was a bit of a shock to the system, triggering declines in both equity and cryptocurrency markets. Instead of the expected 0.3% increase, the CPI rose by 0.5% in January. Because, you know, 0.5% is just a tiny little number that won’t affect the entire economy… 🙄

Capital Economics’ Paul Ashworth thinks a cut this year looks increasingly unlikely. “With tariffs likely to keep core PCE inflation close to, or above, 3% this year now, the Fed will stand pat for at least the next 12 months.” Treasury yields jumped on the inflation data and are holding on to their gains, with the 10-year at 4.651%, on path for its highest close since mid-January.

A reduced likelihood of rate cuts poses additional downside risk for risk-on assets like BTC. Further compounding this uncertainty, Federal Reserve Chair Jerome Powell testified before Congress yesterday, emphasizing that central bank rate cuts remain unlikely in the foreseeable future. Because, you know, the Fed is like the ultimate party pooper – it’s always raining on the parade. ☔️

Crypto analyst HurryNFT shared insights on BTC’s price movement following the CPI data release. The analyst noted that while inflation remains above the Fed’s 2% target, Trump is pushing for rate cuts to stimulate the economy. Because, you know, Trump is like the ultimate wild card – he’s always throwing curveballs and making things interesting. 🎳

The ongoing friction between the Federal Reserve and Trump could increase market volatility, potentially pushing BTC further down to $92,000. Additionally, the recent US employment report did little to support Bitcoin’s price. But hey, at least we have the CryptoQuant report to give us some hope – it says BTC might surge to anywhere between $145,000 to $249,000 under the Trump administration. Because, you know, hope is like the ultimate cryptocurrency – it’s always fluctuating and never quite reliable. 🤞

At press time, BTC trades at $95,240, up 0.8% in the past 24 hours. Because, you know, the market is like a rollercoaster – it’s always going up and down and making us question our life choices. 🎠

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2025-02-13 10:36