The January inflation data, which are eagerly awaited in the United States and are crucial for the Federal Reserve’s interest rate policy, have been officially announced. January’s annual inflation data was 3.1%. 2.9% was the expected rate.

The Fed’s long-term monetary restriction policy has, as of currently, come to an end, but their inflation target is around 2%.

Decline in Bitcoin

The inflation data for December was 3.4%. Therefore, this decline can be seen as positive, but the announcement of data above expectations caused the Fed swap markets to expect an interest rate cut of less than 100 basis points in 2024. In addition, interest rate cut expectations have completely changed from June to July.

There was also a decline in Bitcoin after the data was announced. The biggest cryptocurrency dropped to $49,188.

As you may remember, Fed Chairman Jerome Powell stated in his last press conference that he did not think the economy would reach a level where interest rate cuts would be initiated in March.