The US Bureau of Labor Statistics released data on US inflation for January on Wednesday (12), indicating a 0.5% increase in prices compared to the previous report. Cumulative annual inflation is at 3%.
The higher-than-expected numbers caused the #bitcoin to immediately fall from US$ 96,500 to US$ 94,000, a drop of 2.5% in about 15 minutes.
This is because the data shows that the Fed has not controlled inflation and should keep interest rates at current levels for longer. On Tuesday (11), Jerome Powell, chairman of the Fed, had already stated that they are in no rush to make further cuts.