Following the release of Consumer Price Index (CPI) data in the United States, the price of Bitcoin (BTC) decreased and momentarily dropped below $95,000. These data indicate that annual inflation in January 2025 reached 3%, which was 0.1% higher than expectations. Additionally, monthly inflation increased by 0.5%, marking the largest rise in recent years. The US CPI data coincided with pressure from Donald Trump, the US President, to reduce interest rates. Trump wrote on Truth Social: ‘Interest rates must decrease, accompanied by new tariffs!’ Trump had previously accused the central bank of weak inflation management and banking regulations and announced his immediate demand for rate cuts on January 25. However, Jerome Powell, the Federal Reserve Chairman, emphasized that there is no rush to cut interest rates and the current monetary policy remains appropriate for the country’s economic situation. Some experts, like Nic Puckrin from Coin Bureau, believe that the inflation increase is not related to Trump’s tariffs but mostly due to seasonal factors. He also said that the actual impact of tariffs may ultimately reduce inflation. Meanwhile, analysts at Steno Research have warned that the US inflation increase could increase selling pressure on Bitcoin. However, previous interest rate cuts have been accompanied by increased investment in digital assets. Currently, investors are closely watching employment data (March 7) and Personal Consumption Expenditure Index (February 28) to determine the future monetary policy of the Federal Reserve. On the real-time digital currencies price page, you can monitor the prices of all tokens and cryptocurrencies live and instantly.
