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US Inflation Hits 3.3% as Bitcoin Plunges Below $95K—Markets on Edge!
The United States has witnessed a sudden surge in inflation, with the Consumer Price Index (CPI) rising by 0.5 percent in January, exceeding forecasts and reaching an unprecedented level of 3.3% year-over-year. This unexpected increase has sent shockwaves throughout global markets, causing a massive sell-off in cryptocurrencies, particularly Bitcoin.
The flagship digital currency plummeted from its highest point today at $97,173.24 to a low of $94,200 in the last 24 hours, marking a significant decline. The Ethereum network did not escape the downturn either, with its price falling by $99 and reaching a value of $2569.
In reaction to this sudden inflation surge, US stock indices have tumbled approximately 1 percent, while the interest rate on 10-year Treasury bonds has spiked to an unprecedented high of 4.63%. This drastic shift in market sentiment is expected to further fuel uncertainty among investors.
Federal Reserve Chairman Jay Powell has reaffirmed that additional central bank rate cuts are unlikely to occur for the foreseeable future, pending unforeseen downturns in either inflation or economic conditions. These ominous words have amplified concerns about a possible future hike in interest rates.
The sudden shift in the market landscape is largely attributed to an array of factors, including the AI-driven China trade war fears, threats of tariffs, higher interest rates due to persistent economic strength, and rising inflation.
Source: bitcoinik.com
