Bitcoin Price Drops Below $95K Amid Higher US Inflation Data
On February 12, 2023, Bitcoin plunged to $94,091 following unexpected US inflation data, revealing a 0.5% monthly rise in CPI. Forecasted Federal Reserve rates have shifted, with fewer expectations for cuts in 2025 and potential easing now anticipated in October. Market analysts note crucial support and resistance levels influencing future price movements.
Bitcoin experienced a notable decline, dipping below $95,000 around the opening of Wall Street on February 12, 2023, as the latest US inflation data exceeded expectations. According to data provided by Cointelegraph Markets Pro and TradingView, prices dropped to a recent local low of $94,091 on Bitstamp.
The Consumer Price Index (CPI) for January revealed a higher-than-anticipated monthly increase of 0.5%, outpacing forecasts by 0.2%. Additionally, the year-over-year rate rose to 3%, surpassing the anticipated 2.9%. “Headline CPI inflation is up for 4 straight months and Core CPI is officially back on the rise again. Inflation in the US is HOT,” stated the trading resource, The Kobeissi Letter.
In light of these developments, estimates from CME Group’s FedWatch Tool indicated that expectations for the Federal Reserve to implement interest rate cuts in March have sharply declined to 2.5%. Furthermore, traders adjusted their view on potential cuts in the first half of 2025, favoring October as the more likely timeframe for any policy easing.
In summary, Bitcoin’s recent price fluctuation is primarily attributed to an unexpected rise in US inflation rates. The market is currently at a critical turning point, with key price levels set for support and resistance. Moreover, traders are recalibrating their predictions on Federal Reserve interest rates, highlighting a cautious approach in the wake of upward inflation data.
Original Source: www.tradingview.com
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