This week, the cryptocurrency market has been significantly impacted by US inflation data. Bitcoin fell below the $95,000 mark following the unexpected inflation increase, sparking new debates over interest rates.
Inflation Rise and Bitcoin's Reaction
On February 12, 2025, the US Bureau of Labor Statistics released inflation data for January. The Consumer Price Index (CPI) showed a monthly increase of 0.5%, exceeding the forecast by 0.2%. Year-over-year, inflation reached 3%, which is 0.1% above expectations. This significant inflation increase, the highest observed in a year, has raised concerns among investors. In response to this news, the cryptocurrency market reacted negatively, causing Bitcoin to fall below $95,000.
Disputes Over Interest Rate
In this economic context, Donald Trump reiterated his call for a reduction in interest rates on his platform, Truth Social. He stated: “Interest rates should be lowered, which would go hand in hand with the upcoming tariffs! Let's Rock and Roll, America!”. This statement followed comments from Fed Chairman Jerome Powell, who noted that the central bank does not see an urgency to lower rates: “Our monetary policy is now significantly less restrictive than before and the economy remains strong, we do not need to rush to adjust our monetary policy.”
Forecasts and Future Expectations
Nic Puckrin of The Coin Bureau suggests that the January inflation rise is partially due to seasonal factors and should not influence the Fed's decision on rates in March. He expects the Fed to focus more on unemployment figures expected on March 7 and the personal consumption expenditures (PCE) index scheduled for February 28.
In summary, Bitcoin faces several challenges: higher-than-expected inflation, disagreements over U.S. monetary policy, and growing trade tensions between the U.S. and China. These factors maintain a strong uncertainty in the crypto markets.
