Bitcoin's value declined by 2% following a higher-than-anticipated U.S. inflation report.
The January Consumer Price Index (CPI) figures dampened prospects for imminent interest rate reductions, consequently exerting pressure on riskier assets like cryptocurrencies.
Key points:
*Bitcoin declined to $48,800 following the release of the January Consumer Price Index report, which revealed a 3.1% annual inflation rate, surpassing analyst predictions.
*According to the CME FedWatch Tool, expectations of a rate cut in May decreased from 52% to 34%.
*Craig Erlam from OANDA remarked that while the "nasty" inflation was momentarily detrimental, it wouldn't "dampen the mood" in crypto markets.
