Following the release of U.S. consumer price data, crypto markets saw a significant downturn. Major assets, including Bitcoin and Ethereum, dropped in price.
Inflation Surge and Its Impact on Crypto Markets
The Consumer Price Index (CPI) rose 0.5% in January, surpassing expectations. This led to a decline in crypto markets: Bitcoin fell by over 2%, while Ethereum also dropped more than 2%.
Impact on Traditional Markets
Following the CPI report, U.S. stocks and bonds also suffered. The Dow Jones and other indices experienced significant declines, while bonds dropped in value.
Speculations on Fed's Actions
The inflation rise has triggered discussions about the necessity to rethink the Federal Reserve's rate policies. Some analysts believe earlier rate cuts were premature.
Neither crypto nor traditional markets escaped the volatility following the inflation data release. Speculation about future Fed actions continues.
