Bitcoin Drops 2% on Hotter-Than-Expected U.S. Inflation

Bitcoin Drops 2% on Hotter-Than-Expected U.S. Inflation


Bitcoin dropped to $48,800 as the January Consumer Price Index report showed 3.1% annual inflation, higher than analyst forecasts. Expectations of a rate cut in May fell to 34% from 52%, CME FedWatch Tool shows.

Bitcoin (BTC) fell below $49,000 Tuesday after a hotter-than-anticipated U.S. inflation reading weighed on interest-rate cut expectations.

The largest crypto by market capitalization slipped about 2% to $48,700 from slightly above $50,000 earlier in the day, while the broad-market crypto index CoinDesk 20 (CD20) lost 2.4%.

The drop happened after the January Consumer Price Index (CPI) report showed 3.1% year-on-year inflation, faster than analysts’ 2.9%

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