Bitcoin stays below $100,000 as inflation concerns persist, weakening risk appetite

Key Points

  • Bitcoin remained under $100,000 after the U.S. consumer price index for January was released, reducing expectations for quantitative easing.
  • Inflation in the U.S. rose by 3% last month, suggesting the Federal Reserve might keep interest rates unchanged.
  • President Trump's tariff threats could impose significant costs on U.S. households, influencing market behavior.

Summary

Bitcoin's price stayed below $100,000 following the release of January's U.S. consumer price index, which showed a 3% increase in inflation. This development has led to a decrease in expectations for further quantitative easing by the Federal Reserve, which is likely to maintain current interest rates due to ongoing inflation concerns. The inflationary environment has made investors cautious, steering them away from high-risk assets like Bitcoin towards more secure investments. Additionally, President Trump's tariff threats have introduced further market uncertainty, with potential costs to American households if all proposed tariffs are implemented. Meanwhile, other cryptocurrencies like Ether and Dogecoin have seen price movements, with Dogecoin experiencing significant returns but also substantial losses for many investors. This scenario has led to a market correction, with investor focus shifting towards Bitcoin, which is seen as a more stable entry point into the cryptocurrency market.

yahoo
February 13, 2025
Crypto
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