The United States announced an unadjusted Consumer Price Index (#cpi ) annual rate of 3.1% for January, higher than the expected 2.9% and the previous value of 3.4%. Inflation data exceeding expectations pressured rate cut forecasts, leading Bitcoin (BTC) to fall below $49,000. The primary cause of the higher-than-expected #inflation rate is the rise in #GasolinePrices . There are mainly two reasons for the increase in gasoline prices:
#Russia announced it would start reducing oil production from February 25th;
The European Union imposed an embargo on Russian refined oil products starting February 5th, 2024.
These are considered one-off bearish factors, and oil prices are expected to stabilize at new levels as the supply chain quickly adjusts to this change. Therefore, the impact of this news on cryptocurrency prices is expected to conclude within a day.
Currently, the price of Bitcoin has broken through its previous high. From a technical analysis perspective, it is suggested that previous short positions should be closed. The market is currently in a phase of observation and reformation of consensus, and any further actions should await a definitive market trend.
