The post US CPI Rises To 3% Sparking Crypto Market Crash Speculations appeared on BitcoinEthereumNews.com.

The long-awaited US CPI inflation for January comes in hotter at 3% on a year-over-year (YoY) basis, up from the 2.9% noted in the prior month. This hotter-than-anticipated inflation figure has sparked market concerns over a potential crypto market crash ahead. Notably, digital assets have faced immense volatility lately due to macroeconomic concerns and the Fed’s hawkish stance which has weighed on the investors’ sentiment. US CPI Inflation Comes In At 3% In the latest development, the Labor Department reported that the US CPI inflation comes in at 3%, up from the prior month’s reading of 2.9%. On a monthly basis, the inflation rises to 0.5% in January, up from the 0.4% spike noted in the prior month. Notably, both these data come in hotter than the market expectations. Simultaneously, the Core CPI, which excludes the food and energy prices, came in at 0.4% last month, up from the prior month’s figure of 0.2%. On the other hand, the core US CPI on a YoY basis soars to 3.3% as compared to December’s figure of 3.2%. Wall Street was expecting the Core CPI to come in at 3.1% on a YoY basis and 0.3% on a monthly basis. These hotter-than-expected figures have added pressure on the investors’ sentiment who were already trading cautiously due to broader macroeconomic concerns. Notably, the Federal Reserve has provided a hawkish tone recently with their rate cut plans, which has already dampened market momentum. Now, this spike in US CPI data, while the market was expecting the cooling inflation figures, has further led investors to panic. Besides, it would also provide more space for the central bank to move ahead with its hawkish plan. Crypto Market Retreat After US CPI Release Following the US CPI release by the Labor Department, the crypto market faces a…

---

Filed under: News - @ February 13, 2025 12:24 am