Bitcoin Crashes Below $95K! Inflation Data Shakes Crypto Markets

Bitcoin Tanks After U.S. Inflation Shocker – What’s Next?
Crypto Bloodbath! Bitcoin, Ethereum Plunge as Fed Holds Firm on Rates
Goldman Sachs Goes All-In on Bitcoin & Ethereum ETFs – Should You?
Trump’s Crypto Moves: Strategic Token Reserve to Stabilize BTC & ETH

On February 12, Bitcoin’s price fell below $95,000 after U.S. inflation data for January came in higher than expected, rattling both crypto and traditional markets.

The Consumer Price Index (CPI) surged 0.5% for the month, the largest increase in a year, surpassing expectations of 0.3%. On an annual basis, CPI reached 3.0%, slightly above the projected 2.9%. Core CPI, which excludes food and energy, rose 0.4% monthly and 3.3% annually, both higher than forecasts.

Fed’s Stand on Interest Rates & Trump’s Reaction
Federal Reserve Chair Jerome Powell reaffirmed that the central bank is in no rush to cut interest rates, citing strong economic performance and persistent inflation trends. His remarks came just a day after Donald Trump urged rate cuts on Truth Social, linking them to his proposed tariffs. Trump has repeatedly criticized Powell and the Fed, blaming them for inflation and weak banking regulations.

Bitcoin & Crypto Market Sentiment Turns Bearish
Investor sentiment toward Bitcoin took a hit, with Stocktwits data showing a drop in Bitcoin-related discussions. Over the past 24 hours, the total crypto market lost 3.7%, with altcoins following Bitcoin’s downturn:

Ethereum (ETH): -2.7% to $2,584.79
XRP: -3.1% to $2.37
Solana (SOL): -3.7%
Cardano (ADA): -3.5%
Dogecoin (DOGE): -2.4%
$TRUMP Token: -5.4%
Some traders anticipate further volatility, especially with the upcoming Producer Price Index (PPI) report.

Crypto Analysts Warn of Inflation Risks
Steno Research, a crypto analytics firm, cautioned that rising inflation and interest rates could make risk assets like Bitcoin less attractive, as a stronger U.S. dollar reduces the appeal of non-yielding assets like BTC.

Goldman Sachs Expands Crypto Holdings Despite Market Uncertainty
Meanwhile, Goldman Sachs revealed in SEC filings that it had significantly increased its exposure to Bitcoin and Ethereum ETFs in late 2024.

Ethereum ETF holdings skyrocketed by 2,000% to $476 million
Bitcoin ETF investments grew 114% to $1.52 billion
The firm allocated most of its funds to BlackRock’s iShares Ethereum Trust (ETHA), Fidelity’s Ethereum Fund (FETH), and iShares Bitcoin Trust (IBIT) while exiting positions in Bitcoin ETFs from Bitwise, WisdomTree, and Invesco-Galaxy.

Trump-Linked Crypto Firm Announces Token Reserve
World Liberty Financial (WLF), a crypto firm linked to Donald Trump, announced a strategic token reserve to stabilize major cryptocurrencies like Bitcoin and Ethereum. The firm stated that the reserve aims to reduce volatility and support decentralized finance (DeFi) projects. Reports suggest that Trump and his associates hold a significant stake in WLF’s parent company.

What’s Next for Bitcoin?
Market analysts noted that inflation trends were not entirely unexpected due to seasonal price adjustments. Coin Bureau’s Nic Puckrin argued that Trump’s tariffs shouldn’t be blamed, suggesting they might even have a disinflationary effect.

Powell stated that the Fed will closely monitor key upcoming economic indicators, including:

PCE Index (Feb. 28)
Unemployment Data (March 7)
Bitcoin, which has been trading between $90,000 and $109,000 for over two months, has more than doubled in a year but remains only 1% up in 2025. Despite the drop, BTC was last trading at $97,250.24.

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