BTC Spikes Despite US Reports Higher Than Expected Inflation in January

• US inflation data was reported at a higher than expected rate of 3.1%.
• Despite a higher-than-expected inflation rate, BTC’s price recorded a 4.89% surge in one day.
• The dollar index is showing an increase following the inflation report.

US inflation data for January was announced at 13:30 UTC, just before the stock market opened. In January, inflation in the US occurred at an annual rate of 3.1%, while monthly inflation stood at 0.3%. Economists had predicted a decrease in the annual consumer price inflation from December’s 3.4% to 2.9%.

The decline in inflation towards the end of last year prompted central bankers in the U.S., Europe, and the United Kingdom to reject further interest rate hikes and discuss the possibility of cuts. However, the fact that inflation is currently above expectations may further fuel these discussions.

Last month, Federal Reserve Chairman Jerome Powell stated that the Federal Open Market Committee expected to cut interest rates three times this year. However, with the Fed’s inflation target set at 2%, this still appears to be a distant goal.

The Fed’s preferred…

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