Bitcoin back below $50k while stocks struggle on poor inflation print Bitcoin has dropped below $50,000 again as stocks are facing difficulties due to disappointing inflation data.
Stocks fell slightly and cryptocurrencies showed mixed results on Tuesday morning following the release of the latest consumer price data, which revealed that inflation is more long-lasting than anticipated by economists. The consumer price index for January, which tracks the cost of goods and services nationwide, increased by 0.3% compared to December. Prices have increased by 3.1% compared to last year, based on information from the US Bureau of Labor Statistics. Experts had predicted a 0.2% monthly increase and a 2.9% yearly increase. The S&P 500 and Nasdaq Composite indexes had a turbulent beginning on Tuesday, with both dropping 1.4% and 13% respectively. Bitcoin (BTC) experienced a slight decrease of approximately 0.4% on Tuesday morning in New York after briefly surpassing $50,000. At the time of writing, there was a approximately 4% increase in the value of Ether (ETH). Experts believe that the recent increase in bitcoin’s value above a significant threshold may indicate that the challenges it has been facing are starting to diminish. Bitcoin has surpassed $50,000 as market activity strengthens. According to Craig Erlam, a senior market analyst at OANDA, the bitcoin sell-off after the ETF was short-lived and surpassing $50,000 will be seen as a major milestone in its recovery. Many people are now hoping that it continues to grow and thrive, possibly fueled by the halving event in April. The most recent inflation data might be a cause of concern for investors who are hoping for a decrease in interest rates from the Federal Reserve in the near future.