Bitcoin experienced a significant drop, falling below the $95,000 mark due to unexpectedly high US inflation data.
Market reaction to CPI data
US Consumer Price Index data indicated a 0.5% rise last month, 0.2% more than predicted. This rise was unexpected for the market, leading to Bitcoin's price dropping to $94,091 on the Bitstamp platform.
Fed interest rate expectations
New estimates from CME Group show that the likelihood of the Federal Reserve cutting interest rates at its next meeting in March has dropped to 2.5%. Additionally, traders do not expect further rate cuts in the first half of 2025, instead eyeing October.
Critical moment for Bitcoin price
Bitcoin was seeking a rebound amid the return of the market, still lingering in the mid-$90,000 zone. Analysts are monitoring buyer interest. Signals on Binance display ample liquidity between the current spot price and the range lows at $90,000. Trading channel More Crypto Online highlighted that short-term resistance and support levels are $96,690 and $93,630 respectively.
The market continues to closely monitor changes in inflation and potential Federal Reserve responses, which in turn continues to exert pressure on Bitcoin prices.
