Efe Nail Saltık 
Bitcoin started to decline after the release of the US CPI data. Bitcoin exceeded $50,000 yesterday, reaching these levels after a long time, but after the data did not come as expected, the decline began.
Bitcoin Starts to Fall After US CPI Data
Here are the data released:
Consumer Price Index Monthly: 0.3% Expected – 0.2% Expected – 0.2% Previous
Consumer Price Index Annual: 3.1% Expected – 2.9% Expected – 3.4% Previous
Core Consumer Price Index Monthly: 0.4% Expected – 0.3% Expected – 0.3% Previous
Core Consumer Price Index Annual: 3.9% Announced – 3.7% Expected – 3.9% Previous
The consumer price index is an important indicator to measure consumer buying trends and US inflation change.
US inflation for January came in at 3.1%, above expectations of 2.9%. As the data exceeded expectations, the dollar index (DXY) moved upwards, while Bitcoin fell by around $400.
Bitcoin, which was trading at $ 49,950 just before the US inflation was announced, fell to $ 49,550 after the data. While this movement affected the entire cryptocurrency market, Ethereum (ETH) also retreated to $2,648. According to CoinGecko data, Bitcoin is currently trading at $49,634 and Ethereum at $2,651. Inflation in the US increased in June and July, but then started to decline again. The US Federal Reserve (FED) is expected to cut interest rates by 25 basis points at least 4 times this year, with the expectation that there will be no major increase in the inflation rate. However, some commentators point out that the contrary to expectations inflation data indicate that future rate cuts may be realized later.