Bitcoin falls 3% after US inflation data beats expectations. Analysts warn of a key support level that could trigger a major sell-off.
US Inflation Data Hits Bitcoin Hard
The latest US Consumer Price Index (CPI) report came in higher than expected, signaling that inflation remains a concern. Following the news, Bitcoin (BTC) dropped nearly 3% in just 15 minutes, hitting $94,100.
Altcoins followed suit, with Ethereum (ETH) slipping to $2,600 and Solana (SOL) falling to $191.
As a result, markets have shifted their expectations for the next Federal Reserve rate cut from September to December. According to the CME FedWatch tool, investors now see a 97.5% chance that the Fed will keep rates steady in March.
📉 Key Takeaways:
🔹 Inflation fears delay Fed rate cut expectations to December
🔹 Market odds of a March rate hold: 97.5% (CME FedWatch)
🔹 #Powell signals no rush to cut rates unless inflation nears 2% target according to Yahoo Finance.
🔹 #Trump said, “Biden inflation up!” which indicates that his decision will improve that rate, hopefully!!
