Bitcoin, Ethereum, XRP, Dogecoin Slip as Hot CPI Data Triggers Risk-Off Mood

💡 Cryptocurrencies decline as high inflation data sparks risk-off sentiment among investors.

The Federal Reserve delivered a hawkish surprise on Wednesday, signaling that interest rate cuts remain further away than markets had hoped. Fed Chair Jerome Powell told reporters that the central bank needs "greater confidence" that inflation is sustainably declining before it will consider easing policy. The 10-year Treasury yield surged to 4.8% in the aftermath, its highest level since October 2023. $TLT fell sharply as bond traders repriced the timing of the first cut from March to June.

Cryptocurrency Market Reacts to Inflation Data The cryptocurrency market was not immune to the inflation data, with Bitcoin ($BTC), Ethereum ($ETH), XRP, and Dogecoin all slipping in value. **Bitcoin**, the largest cryptocurrency by market capitalization, fell by **2.5%** to $36,500, while **Ethereum** declined by **3.2%** to $2,400.

XRP and Dogecoin Also Decline XRP, the third-largest cryptocurrency, fell by **4.1%** to $0.65, while Dogecoin dropped by **5.5%** to $0.08. The decline in these smaller cryptocurrencies suggests that investors are becoming increasingly risk-averse.

What It Means for Investors The decline in cryptocurrency prices is a sign that investors are becoming more cautious in the face of high inflation data. As interest rates remain elevated, investors may seek safe-havens, such as traditional assets like **$SPY** or **$TLT**. Do you think Bitcoin will hold above $35,000? Share your view in the comments.