Bitcoin

Bitcoin (BTC) experienced a significant dip, falling below $49,000, as the latest U.S. inflation data, released on February 13, exerted downward pressure on risk assets. 
<img loading="lazy" decoding="async" class="size-full wp-image-30977 alignnone" src="https://crypto.ro/en/wp-content/uploads/2024/02/BTCUSD_2024-02-13_18-01-33.png" alt="BTCUSD 2024 02 13 18 01 33" width="1835" height="857" title="Bitcoin drops below $49,000 amid hot U.S. inflation data 17" srcset="https://crypto.ro/en/wp-content/uploads/2024/02/BTCUSD_2024-02-13_18-01-33.png 1200w, https://crypto.ro/en/wp-content/uploads/2024/02/BTCUSD_2024-02-13_18-01-33-300x140.png 300w, https://crypto.ro/en/wp-content/uploads/2024/02/BTCUSD_2024-02-13_18-01-33-1024x478.png 1024w, https://crypto.ro/en/wp-content/uploads/2024/02/BTCUSD_2024-02-13_18-01-33-768x359.png 768w, https://crypto.ro/en/wp-content/uploads/2024/02/BTCUSD_2024-02-13_18-01-33-750x350.png 750w, https://crypto.ro/en/wp-content/uploads/2024/02/BTCUSD_2024-02-13_18-01-33-1140x532.png 1140w" sizes="(max-width: 1835px) 100vw, 1835px"> 
The Consumer Price Index (CPI) for January indicated a higher-than-expected inflation rate, challenging the cryptocurrency’s recent gains and impacting broader market sentiment. 
<a href="https://www.bls.gov/news.release/cpi.nr0.htm" rel="nofollow noopener" target="_blank">The CPI report</a> revealed a month-on-month increase of 0.3% and a year-on-year inflation rate of 3.1%, both exceeding analysts’ predictions. 
<img decoding="async" class="alignnone" src="https://s3.cointelegraph.com/uploads/2024-02/c064ee92-8a1d-42fd-9895-6c4eaa56cd14.png" alt="c064ee92 8a1d 42fd 9895 6c4eaa56cd14" title="Bitcoin drops below $49,000 amid hot U.S. inflation data 18"> 
This led to immediate market reactions, with the Federal Reserve’s anticipated rate cut likely being postponed from March to later in the year. The CME Group’s FedWatch Tool showed a dramatic decrease in the probability of a March rate cut, dropping to just 8.5% from 17.5% the day before. 
<img decoding="async" src="https://s3.cointelegraph.com/uploads/2024-02/f2830101-5ce0-4d1d-a3a3-ef29527f4fc9.png" alt="f2830101 5ce0 4d1d a3a3 ef29527f4fc9" title="Bitcoin drops below $49,000 amid hot U.S. inflation data 19"> 
The news was not well received by <a href="https://crypto.ro/en/cryptocurrencies/bitcoin/">Bitcoin</a>, which saw a 3.8% price decline within a day, bottoming out at $48,435 on Bitstamp. 
This setback comes after a period of positive momentum for Bitcoin, which had soared from $43,000 to over $48,000 in the previous week. The inflation data has also had a ripple effect on traditional markets, with the S&amp;P 500 and Nasdaq Composite Index both experiencing declines. 
Additionally, the latest inflation update overshadowed the positive inflows into Bitcoin ETFs, which had been contributing to a bullish outlook for the cryptocurrency. 
Despite these challenges, some traders remain optimistic about ETF flows, which continue to absorb BTC supply at a rate significantly faster than new coins are minted. 
This market turbulence has resulted in over $210 million in <a href="https://www.coinglass.com/LiquidationData" rel="nofollow noopener" target="_blank">liquidations</a> across the crypto market, highlighting the high stakes and volatility inherent in cryptocurrency trading. With the largest single liquidation on Binance involving an ETH/USDT pair worth $4.7 million, the event underscores the impact of macroeconomic indicators on digital assets.

Bitcoin drops below $49,000 amid hot U.S. inflation data

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