 Bitcoin drops below $95K as US inflation surpasses expectations 
2025-02-12
Category: None

Bitcoin and the broader cryptocurrency market turned red on Feb. 12 as the US inflation rate came in higher than expected, raising concerns about macroeconomic pressures on digital assets.
Bitcoin BTCUSD briefly tumbled below $95,000, minutes after the release of US Consumer Price Index (CPI) data, which showed annual inflation at 3% in January 2025 — 0.1% higher than expected.
The US Bureau of Labor Statistics reported on Feb. 12 a CPI monthly increase of 0.5%, exceeding the Dow Jones forecast by 0.2%.
January’s rise in inflation was the largest monthly increase in a year.
Trump reiterates that interest rates should be lowered
The CPI data came amid US President Donald Trump’s call to cut interest rates in a post on his social media platform, Truth Social.
“Interest rates should be lowered, something which would go hand in hand with upcoming tariffs! Let’s Rock and Roll, America!” Trump wrote.
Trump’s comments came a day after Federal Reserve Chairman Jerome Powell said the central bank does not need to rush to cut interest rates.
“With our policy stance now significantly less restrictive than it had been and the economy remaining strong, we do not need to be in a hurry to adjust our policy stance,” Powell stated.
Trump previously slammed Powell and the Fed, arguing that they “failed to stop the problem they created with inflation” and had done a “terrible job on bank regulation” in late January.
The president also previously claimed he would “demand that interest rates drop immediately” on Jan. 25.
Trump tariffs impacting inflation?
The worse-than-expected inflation data wasn’t surprising given that January “often sees seasonal price increases,” according to Coin Bureau founder Nic Puckrin.
“It would be an error to attribute this to President Trump’s tariffs,” Puckrin told Cointelegraph, adding that the president’s policies would likely have an “unexpected disinflationary effect.”
He also suggested that it’s unlikely the latest CPI data would impact the Fed’s interest rate decision in March.
“Rather, the Fed will be watching unemployment figures coming out on March 7, as well as its preferred inflation measure — the PCE [Personal Consumption Expenditures] index — on Feb. 28,” Puckrin said, adding:
Crypto analytics firm Steno Research previously reported that Bitcoin would likely see more selloffs amid rising US inflation as it creates an unfavorable macroeconomic backdrop for risk assets.
On the other hand, interest rate cuts have been previously associated with higher inflows in crypto investment products.
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