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Why Bitcoin is Down: Latest Inflation Data Sinks BTC and Several Altcoins

Crypto

Wednesday, 12/02/2025 | 16:02 GMT by
Jared Kirui

  • The inflation report reduced hopes for Federal Reserve rate cuts in 2025.
  • It deepened concerns that the Federal Reserve may maintain higher interest rates for an extended period, delaying monetary easing.

crypto Bitcoin token on a blue background

A hotter-than-expected U.S. inflation report shocked the
financial markets today (Wednesday), triggering sharp declines across
cryptocurrencies and equities. Bitcoin tumbled below $95,000 following the release of
January’s Consumer Price Index (CPI) data, which showed inflation climbing
faster than anticipated.

The report dampened hopes for Federal Reserve rate
cuts in 2025, affecting Bitcoin and most altcoin prices. Bitcoin dropped 2% today (Wednesday), trading as low as $94K. Prices have also declined in the altcoin space, with Ethereum and XRP down 6% and 4%, respectively, in the past week.

According to Bloomberg data, the CPI rose 0.5% in
January, surpassing expectations of a 0.3% increase and accelerating from
December’s 0.4% rise. On an annual basis, inflation climbed to 3.0%, above the
forecasted 2.9%.

Bitcoin Price Plunges, Source: CoinMarketCap

Inflation Surprises to the Upside

The core CPI, which excludes food and energy prices,
also came in higher than anticipated at 0.4% month-over-month and 3.3%
year-over-year. The data signaled that inflationary pressures remain stubborn,
challenging market hopes for monetary easing in the near term.

The latest CPI reading reinforced concerns that the
Federal Reserve may hold interest rates higher for longer. Just a day before
the report, Fed Chairman Jerome Powell reportedly reiterated that the central
bank remains cautious about premature rate cuts.

January’s data has further bolstered the case for the
Fed to maintain its restrictive stance. Market expectations for rate cuts in
2025 have shifted significantly.

Bitcoin’s decline below $95,000 extends a period of
price consolidation that began after it briefly surpassed $100,000 in November.
Since then, the cryptocurrency has been stuck in a range between $91,000 and
$105,000, weighed down by macroeconomic uncertainty.

Bitcoin Faces Price Consolidation, Source: TradingView

Several factors have contributed to Bitcoin’s struggle
to sustain momentum. Concerns over artificial intelligence-driven economic
shifts in China, the potential for trade wars, and the Fed’s cautious stance on
rate cuts have all played a role, Coindesk reported.

A Shift Away from Speculative Assets

Higher-for-longer interest rates typically reduce the
appeal of speculative assets like Bitcoin, as investors seek safer returns in
bonds and other fixed-income instruments. Adding to market concerns, analysts warn that the
latest inflation figures do not yet reflect the potential impact of newly
announced U.S. tariffs on Chinese imports.

With inflation remaining stubbornly above the Fed’s 2%
target, markets may need to adjust to a prolonged period of restrictive
monetary policy. This could pressure risk assets, including Bitcoin, in the
near term.

A hotter-than-expected U.S. inflation report shocked the
financial markets today (Wednesday), triggering sharp declines across
cryptocurrencies and equities. Bitcoin tumbled below $95,000 following the release of
January’s Consumer Price Index (CPI) data, which showed inflation climbing
faster than anticipated.

The report dampened hopes for Federal Reserve rate
cuts in 2025, affecting Bitcoin and most altcoin prices. Bitcoin dropped 2% today (Wednesday), trading as low as $94K. Prices have also declined in the altcoin space, with Ethereum and XRP down 6% and 4%, respectively, in the past week.

According to Bloomberg data, the CPI rose 0.5% in
January, surpassing expectations of a 0.3% increase and accelerating from
December’s 0.4% rise. On an annual basis, inflation climbed to 3.0%, above the
forecasted 2.9%.

Bitcoin Price Plunges, Source: CoinMarketCap

Inflation Surprises to the Upside

The core CPI, which excludes food and energy prices,
also came in higher than anticipated at 0.4% month-over-month and 3.3%
year-over-year. The data signaled that inflationary pressures remain stubborn,
challenging market hopes for monetary easing in the near term.

The latest CPI reading reinforced concerns that the
Federal Reserve may hold interest rates higher for longer. Just a day before
the report, Fed Chairman Jerome Powell reportedly reiterated that the central
bank remains cautious about premature rate cuts.

January’s data has further bolstered the case for the
Fed to maintain its restrictive stance. Market expectations for rate cuts in
2025 have shifted significantly.

Bitcoin’s decline below $95,000 extends a period of
price consolidation that began after it briefly surpassed $100,000 in November.
Since then, the cryptocurrency has been stuck in a range between $91,000 and
$105,000, weighed down by macroeconomic uncertainty.

Bitcoin Faces Price Consolidation, Source: TradingView

Several factors have contributed to Bitcoin’s struggle
to sustain momentum. Concerns over artificial intelligence-driven economic
shifts in China, the potential for trade wars, and the Fed’s cautious stance on
rate cuts have all played a role, Coindesk reported.

A Shift Away from Speculative Assets

Higher-for-longer interest rates typically reduce the
appeal of speculative assets like Bitcoin, as investors seek safer returns in
bonds and other fixed-income instruments. Adding to market concerns, analysts warn that the
latest inflation figures do not yet reflect the potential impact of newly
announced U.S. tariffs on Chinese imports.

With inflation remaining stubbornly above the Fed’s 2%
target, markets may need to adjust to a prolonged period of restrictive
monetary policy. This could pressure risk assets, including Bitcoin, in the
near term.

crypto Jared Kirui

  • 1676 Articles
  • 30 Followers

Jared is an experienced financial journalist passionate about all things forex and CFDs.

  • 1676 Articles
  • 30 Followers

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    In this webinar recording, @brokeree experts, Tatiana Pilipenko and Victor Ivanov, discuss the ongoing relevance of copy trading in today’s market. With the rise of proprietary trading services, many have questioned if copy trading is still a viable strategy. However, Tatiana and Victor explain why this trading approach remains a powerful tool for brokers to attract new clients and boost trading volumes.

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    #BROKEREE #ForexTrading #CryptoTrading #BrokerSolutions #MultiMarketGrowth #FinancialTechnology #TradingInnovation #BrokerageTools #SaaSforBrokers #FinancialSolutions #BusinessGrowth #TradingPlatforms #MarketExpansion #FinTechInnovation

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    In this webinar recording, @brokeree experts, Tatiana Pilipenko and Victor Ivanov, discuss the ongoing relevance of copy trading in today’s market. With the rise of proprietary trading services, many have questioned if copy trading is still a viable strategy. However, Tatiana and Victor explain why this trading approach remains a powerful tool for brokers to attract new clients and boost trading volumes.

    📣 Stay updated with the latest in finance and trading!
    Follow Finance Magnates across our social media platforms for news, insights, and event updates.

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    🎥 TikTok: https://www.tiktok.com/tag/financemagnates
    ▶️ YouTube: https://www.youtube.com/channel/UCaMiOoCIu0Lb_bEO_V2kI_g

    #BROKEREE #ForexTrading #CryptoTrading #BrokerSolutions #MultiMarketGrowth #FinancialTechnology #TradingInnovation #BrokerageTools #SaaSforBrokers #FinancialSolutions #BusinessGrowth #TradingPlatforms #MarketExpansion #FinTechInnovation

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    In this webinar recording, @brokeree experts, Tatiana Pilipenko and Victor Ivanov, discuss the ongoing relevance of copy trading in today’s market. With the rise of proprietary trading services, many have questioned if copy trading is still a viable strategy. However, Tatiana and Victor explain why this trading approach remains a powerful tool for brokers to attract new clients and boost trading volumes.

    📣 Stay updated with the latest in finance and trading!
    Follow Finance Magnates across our social media platforms for news, insights, and event updates.

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    🎥 TikTok: https://www.tiktok.com/tag/financemagnates
    ▶️ YouTube: https://www.youtube.com/channel/UCaMiOoCIu0Lb_bEO_V2kI_g

    #BROKEREE #ForexTrading #CryptoTrading #BrokerSolutions #MultiMarketGrowth #FinancialTechnology #TradingInnovation #BrokerageTools #SaaSforBrokers #FinancialSolutions #BusinessGrowth #TradingPlatforms #MarketExpansion #FinTechInnovation

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  • Executive Interview with Meryem Habibi | Bitpace | iFX EXPO Dubai 2025


    Executive Interview with Meryem Habibi | Bitpace | iFX EXPO Dubai 2025

    Executive Interview with Meryem Habibi | Bitpace | iFX EXPO Dubai 2025


    Executive Interview with Meryem Habibi | Bitpace | iFX EXPO Dubai 2025

    Executive Interview with Meryem Habibi | Bitpace | iFX EXPO Dubai 2025


    Executive Interview with Meryem Habibi | Bitpace | iFX EXPO Dubai 2025

    In this executive interview at the iFX Expo Dubai 2025, Meryem Habibi, Chief Revenue Officer at Bitpace talks about the company’s innovations in the financial technology space. She discusses how Bitpace is addressing challenges in cross-border payments by leveraging stablecoins, and offering fast, low-cost solutions that are transforming the payments industry. Meryem also highlights the growing role of crypto payment gateways and how businesses in trading and other sectors can optimise their operations through enhanced liquidity management and integrated systems.

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    🎥 TikTok: https://www.tiktok.com/tag/financemagnates
    ▶️ YouTube: https://www.youtube.com/channel/UCaMiOoCIu0Lb_bEO_V2kI_g

    #BitSpace #iFXExpoDubai #FinancialTechnology #CrossBorderPayments #Stablecoins #CryptoPaymentGateways #LiquidityManagement #PaymentSolutions #FinancialInnovation #BusinessOptimization #TradingIndustry #PaymentIndustry #TechInnovation #Blockchain #2025Strategy

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    In this executive interview at the iFX Expo Dubai 2025, Meryem Habibi, Chief Revenue Officer at Bitpace talks about the company’s innovations in the financial technology space. She discusses how Bitpace is addressing challenges in cross-border payments by leveraging stablecoins, and offering fast, low-cost solutions that are transforming the payments industry. Meryem also highlights the growing role of crypto payment gateways and how businesses in trading and other sectors can optimise their operations through enhanced liquidity management and integrated systems.

    📣 Stay updated with the latest in finance and trading!
    Follow Finance Magnates across our social media platforms for news, insights, and event updates.

    Connect with us today:
    🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
    👍 Facebook: https://www.facebook.com/financemagnates/
    📸 Instagram: https://www.instagram.com/financemagnates_official/
    🐦 X: https://x.com/financemagnates?
    🎥 TikTok: https://www.tiktok.com/tag/financemagnates
    ▶️ YouTube: https://www.youtube.com/channel/UCaMiOoCIu0Lb_bEO_V2kI_g

    #BitSpace #iFXExpoDubai #FinancialTechnology #CrossBorderPayments #Stablecoins #CryptoPaymentGateways #LiquidityManagement #PaymentSolutions #FinancialInnovation #BusinessOptimization #TradingIndustry #PaymentIndustry #TechInnovation #Blockchain #2025Strategy

    Don’t miss out on our latest videos, interviews, and event coverage.
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    In this executive interview at the iFX Expo Dubai 2025, Meryem Habibi, Chief Revenue Officer at Bitpace talks about the company’s innovations in the financial technology space. She discusses how Bitpace is addressing challenges in cross-border payments by leveraging stablecoins, and offering fast, low-cost solutions that are transforming the payments industry. Meryem also highlights the growing role of crypto payment gateways and how businesses in trading and other sectors can optimise their operations through enhanced liquidity management and integrated systems.

    📣 Stay updated with the latest in finance and trading!
    Follow Finance Magnates across our social media platforms for news, insights, and event updates.

    Connect with us today:
    🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
    👍 Facebook: https://www.facebook.com/financemagnates/
    📸 Instagram: https://www.instagram.com/financemagnates_official/
    🐦 X: https://x.com/financemagnates?
    🎥 TikTok: https://www.tiktok.com/tag/financemagnates
    ▶️ YouTube: https://www.youtube.com/channel/UCaMiOoCIu0Lb_bEO_V2kI_g

    #BitSpace #iFXExpoDubai #FinancialTechnology #CrossBorderPayments #Stablecoins #CryptoPaymentGateways #LiquidityManagement #PaymentSolutions #FinancialInnovation #BusinessOptimization #TradingIndustry #PaymentIndustry #TechInnovation #Blockchain #2025Strategy

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    In this executive interview at the iFX Expo Dubai 2025, Meryem Habibi, Chief Revenue Officer at Bitpace talks about the company’s innovations in the financial technology space. She discusses how Bitpace is addressing challenges in cross-border payments by leveraging stablecoins, and offering fast, low-cost solutions that are transforming the payments industry. Meryem also highlights the growing role of crypto payment gateways and how businesses in trading and other sectors can optimise their operations through enhanced liquidity management and integrated systems.

    📣 Stay updated with the latest in finance and trading!
    Follow Finance Magnates across our social media platforms for news, insights, and event updates.

    Connect with us today:
    🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
    👍 Facebook: https://www.facebook.com/financemagnates/
    📸 Instagram: https://www.instagram.com/financemagnates_official/
    🐦 X: https://x.com/financemagnates?
    🎥 TikTok: https://www.tiktok.com/tag/financemagnates
    ▶️ YouTube: https://www.youtube.com/channel/UCaMiOoCIu0Lb_bEO_V2kI_g

    #BitSpace #iFXExpoDubai #FinancialTechnology #CrossBorderPayments #Stablecoins #CryptoPaymentGateways #LiquidityManagement #PaymentSolutions #FinancialInnovation #BusinessOptimization #TradingIndustry #PaymentIndustry #TechInnovation #Blockchain #2025Strategy

    Don’t miss out on our latest videos, interviews, and event coverage.
    Subscribe to our YouTube channel for more!

    In this executive interview at the iFX Expo Dubai 2025, Meryem Habibi, Chief Revenue Officer at Bitpace talks about the company’s innovations in the financial technology space. She discusses how Bitpace is addressing challenges in cross-border payments by leveraging stablecoins, and offering fast, low-cost solutions that are transforming the payments industry. Meryem also highlights the growing role of crypto payment gateways and how businesses in trading and other sectors can optimise their operations through enhanced liquidity management and integrated systems.

    📣 Stay updated with the latest in finance and trading!
    Follow Finance Magnates across our social media platforms for news, insights, and event updates.

    Connect with us today:
    🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
    👍 Facebook: https://www.facebook.com/financemagnates/
    📸 Instagram: https://www.instagram.com/financemagnates_official/
    🐦 X: https://x.com/financemagnates?
    🎥 TikTok: https://www.tiktok.com/tag/financemagnates
    ▶️ YouTube: https://www.youtube.com/channel/UCaMiOoCIu0Lb_bEO_V2kI_g

    #BitSpace #iFXExpoDubai #FinancialTechnology #CrossBorderPayments #Stablecoins #CryptoPaymentGateways #LiquidityManagement #PaymentSolutions #FinancialInnovation #BusinessOptimization #TradingIndustry #PaymentIndustry #TechInnovation #Blockchain #2025Strategy

    Don’t miss out on our latest videos, interviews, and event coverage.
    Subscribe to our YouTube channel for more!


    In this executive interview at the iFX Expo Dubai 2025, Meryem Habibi, Chief Revenue Officer at Bitpace talks about the company’s innovations in the financial technology space. She discusses how Bitpace is addressing challenges in cross-border payments by leveraging stablecoins, and offering fast, low-cost solutions that are transforming the payments industry. Meryem also highlights the growing role of crypto payment gateways and how businesses in trading and other sectors can optimise their operations through enhanced liquidity management and integrated systems.

    📣 Stay updated with the latest in finance and trading!
    Follow Finance Magnates across our social media platforms for news, insights, and event updates.

    Connect with us today:
    🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
    👍 Facebook: https://www.facebook.com/financemagnates/
    📸 Instagram: https://www.instagram.com/financemagnates_official/
    🐦 X: https://x.com/financemagnates?
    🎥 TikTok: https://www.tiktok.com/tag/financemagnates
    ▶️ YouTube: https://www.youtube.com/channel/UCaMiOoCIu0Lb_bEO_V2kI_g

    #BitSpace #iFXExpoDubai #FinancialTechnology #CrossBorderPayments #Stablecoins #CryptoPaymentGateways #LiquidityManagement #PaymentSolutions #FinancialInnovation #BusinessOptimization #TradingIndustry #PaymentIndustry #TechInnovation #Blockchain #2025Strategy

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  • Why Brokerages Choose B2TRADER for Multi Market Growth


    Why Brokerages Choose B2TRADER for Multi Market Growth

    Why Brokerages Choose B2TRADER for Multi Market Growth


    Why Brokerages Choose B2TRADER for Multi Market Growth

    Why Brokerages Choose B2TRADER for Multi Market Growth


    Why Brokerages Choose B2TRADER for Multi Market Growth

    The global trading landscape is rapidly evolving, and brokerages are looking for solutions that can help them scale and stay competitive. In this webinar, Vladimir Moshkov, Head of B2TRADER shares how B2TRADER empowers brokerages to grow across multiple markets. He highlights key features of the B2TRADER platform and discusses strategies for improving operations, managing client relationships, and driving profitability. Vladimir also shares insights on how brokerages can leverage B2TRADER to attract new clients and enhance overall business performance.

    📣 Stay updated with the latest in finance and trading!
    Follow Finance Magnates across our social media platforms for news, insights, and event updates.

    Connect with us today:
    🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
    👍 Facebook: https://www.facebook.com/financemagnates/
    📸 Instagram: https://www.instagram.com/financemagnates_official/
    🐦 X: https://x.com/financemagnates?
    🎥 TikTok: https://www.tiktok.com/tag/financemagnates
    ▶️ YouTube: https://www.youtube.com/channel/UCaMiOoCIu0Lb_bEO_V2kI_g

    #B2TRADER #ForexTrading #CryptoTrading #BrokerSolutions #MultiMarketGrowth #FinancialTechnology #TradingInnovation #BrokerageTools #SaaSforBrokers #FinancialSolutions #BusinessGrowth #TradingPlatforms #MarketExpansion #FinTechInnovation

    Don’t miss out on our latest videos, interviews, and event coverage.
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    The global trading landscape is rapidly evolving, and brokerages are looking for solutions that can help them scale and stay competitive. In this webinar, Vladimir Moshkov, Head of B2TRADER shares how B2TRADER empowers brokerages to grow across multiple markets. He highlights key features of the B2TRADER platform and discusses strategies for improving operations, managing client relationships, and driving profitability. Vladimir also shares insights on how brokerages can leverage B2TRADER to attract new clients and enhance overall business performance.

    📣 Stay updated with the latest in finance and trading!
    Follow Finance Magnates across our social media platforms for news, insights, and event updates.

    Connect with us today:
    🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
    👍 Facebook: https://www.facebook.com/financemagnates/
    📸 Instagram: https://www.instagram.com/financemagnates_official/
    🐦 X: https://x.com/financemagnates?
    🎥 TikTok: https://www.tiktok.com/tag/financemagnates
    ▶️ YouTube: https://www.youtube.com/channel/UCaMiOoCIu0Lb_bEO_V2kI_g

    #B2TRADER #ForexTrading #CryptoTrading #BrokerSolutions #MultiMarketGrowth #FinancialTechnology #TradingInnovation #BrokerageTools #SaaSforBrokers #FinancialSolutions #BusinessGrowth #TradingPlatforms #MarketExpansion #FinTechInnovation

    Don’t miss out on our latest videos, interviews, and event coverage.
    Subscribe to our YouTube channel for more!

    The global trading landscape is rapidly evolving, and brokerages are looking for solutions that can help them scale and stay competitive. In this webinar, Vladimir Moshkov, Head of B2TRADER shares how B2TRADER empowers brokerages to grow across multiple markets. He highlights key features of the B2TRADER platform and discusses strategies for improving operations, managing client relationships, and driving profitability. Vladimir also shares insights on how brokerages can leverage B2TRADER to attract new clients and enhance overall business performance.

    📣 Stay updated with the latest in finance and trading!
    Follow Finance Magnates across our social media platforms for news, insights, and event updates.

    Connect with us today:
    🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
    👍 Facebook: https://www.facebook.com/financemagnates/
    📸 Instagram: https://www.instagram.com/financemagnates_official/
    🐦 X: https://x.com/financemagnates?
    🎥 TikTok: https://www.tiktok.com/tag/financemagnates
    ▶️ YouTube: https://www.youtube.com/channel/UCaMiOoCIu0Lb_bEO_V2kI_g

    #B2TRADER #ForexTrading #CryptoTrading #BrokerSolutions #MultiMarketGrowth #FinancialTechnology #TradingInnovation #BrokerageTools #SaaSforBrokers #FinancialSolutions #BusinessGrowth #TradingPlatforms #MarketExpansion #FinTechInnovation

    Don’t miss out on our latest videos, interviews, and event coverage.
    Subscribe to our YouTube channel for more!


    The global trading landscape is rapidly evolving, and brokerages are looking for solutions that can help them scale and stay competitive. In this webinar, Vladimir Moshkov, Head of B2TRADER shares how B2TRADER empowers brokerages to grow across multiple markets. He highlights key features of the B2TRADER platform and discusses strategies for improving operations, managing client relationships, and driving profitability. Vladimir also shares insights on how brokerages can leverage B2TRADER to attract new clients and enhance overall business performance.

    📣 Stay updated with the latest

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