Bitcoin experienced a sharp fall on Wednesday, dropping below the $95,000 mark after the release of the Consumer Price Index (CPI) for January in the United States. The unexpected rise in inflation caused concern both in traditional financial markets and among cryptocurrency investors, who felt the consequences almost instantly. The report showed that both overall and core inflation exceeded expectations, which may lead to changes in monetary policy that will affect the crypto market.

For crypto enthusiasts, this is not just another downturn in the market. The overall CPI rose by 0.5% in January, exceeding the forecasted 0.3% and the December figure of 0.4%. On an annual basis, inflation reached 3.0%, slightly higher than expected. The core CPI, which excludes volatile categories such as food and energy, rose by 0.4% for the month and by 3.3% for the year — both figures surpassing expectations. This indicates persistent inflationary pressure, causing concerns about the possible response of the Federal Reserve (FRS), including delaying rate cuts or even considering new hikes.
This economic situation creates challenging conditions for the crypto market, where risks are closely intertwined with opportunities. The sharp fall of Bitcoin below $95,000 reflects broader market concerns, as evidenced by the 2.9% decline in the CoinDesk 20 index over the past day. Traditional financial markets also showed negative dynamics: stock futures fell by approximately 1%, the yield on 10-year US Treasury bonds rose to 4.63%, gold fell by over 1%, and the dollar index rose by 0.5%.