The reasons for the sharp drop in bitcoin by $ 2000 are revealed

The price of the market’s flagship dropped below $ 50,000 after the publication of US inflation data for January. At that moment, the price of BTC $56,555.25 Bitcoin -2.97% Market capitalization $1.12 trillion VOL. 24 hours $4.65 billion dropped to $ 48,500.

The day before, bitcoin hit a 25-month high. On the evening of February 12, the price of the first cryptocurrency briefly exceeded $ 50,000.

Inflation in the US rose to 0.3% in January from 0.2% in December, bolstering arguments that the US Federal Reserve may postpone interest rate cuts. The data published on February 13 did not coincide with analysts' forecasts, who expected the US consumer price index (CPI) to decline further in January and amount to 2.9% compared to 3.4% in December

Inflation figures influence the monetary policy of the US Federal Reserve. According to the CME Group’s Fed Watch Tool, which tracks the regulator’s rate change forecasts, before the inflation data was released on Tuesday, February 13, the probability of a Fed rate cut in March was 15.5%. A month ago, this figure was over 75%, which indicates a significant change in market sentiment.

According to CoinDesk analysts, the popularity of spot bitcoin exchange-traded funds (ETFs) has led to an increase in trading volumes in the US markets, which is why the price of BTC has soared from $ 38,600 to over $ 50,000 in just a few weeks. The CD20 index of the largest cryptocurrencies added 1.72% in 24 hours.