Bitcoin Dips After US Inflation Comes in Slightly Hot

The report suggests the Fed will need to continue tightening monetary policy.

AccessTimeIconFeb 14, 2023 at 1:36 p.m. UTC
Updated May 9, 2023 at 4:08 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The consumer price index (CPI) for January rose 0.5% versus 0.1% a month earlier, in line with economist forecasts.

On a year-over-year basis, however, inflation was running slightly hotter than hoped, coming in at a 6.4% pace in January versus 6.5% in December and against predictions for 6.2%.

The core CPI – which strips out food and energy costs – rose 0.4% in January, also in line with expectations and flat from December's pace. Year-over-year core CPI in January was faster than forecast at 5.6% versus 5.5% expected and down from 5.7% a month earlier.

The price of bitcoin (BTC) fell about $100 in the minutes following the news, trading at $21,770 at press time. Stock index futures dipped a bit as well, with the Nasdaq 100 lower by 0.25%.

Traders are closely watching the pace of inflation, which remains elevated but has been slowing for several months. While a continued slowdown could give the U.S. Federal Reserve the space to perhaps pause its interest rate hiking cycle, Tuesday's report suggests more work needs to be done.

For now, markets continue to expect the central bank to hike its benchmark fed funds rate another 25 basis points at each of its next two meetings (in March and May) and then pause increases.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Stephen  Alpher

Stephen Alpher is CoinDesk's managing editor for Markets. He holds BTC above CoinDesk’s disclosure threshold of $1,000.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.