US Inflation Soars to 3%, Bitcoin Drops to $94,000

The Consumer Price Index (CPI) in the United States rose to 3% from a year earlier in January 2025, faster than economists expected.

The January CPI often reflects large price adjustments made by companies to start the year. So, this report marks an important time for the US central bank's progress in controlling inflation.

It was observed that the S&P 500 and Nasdaq 100 each fell more than 1%. On the other hand, the yield on 10-year government bonds rose seven basis points to 4.60%, and the US dollar strengthened slightly.

On Tuesday (11/02), Federal Reserve (The Fed) Chairman Jerome Powell said that there was no need to rush to lower interest rates. In response, Trump ordered to lower interest rates via his social media account.

"Interest rates have to be lowered, something that will go hand in hand with the tariffs that are coming!" said Trump.

The crypto market responded with Bitcoin prices dropping back to US$94 thousand this evening.