Bitcoin Plunges Below $95K as U.S. Inflation Surges

U.S. inflation surged in February, sending Bitcoin tumbling below the $95,000 mark. On February 12, Bitcoin dropped to local lows around $94,100, according to market data, following a grim January CPI print that exceeded expectations, nudging the year-on-year increase to 3%.

The U.S. Federal Reserve's hawkish stance on inflation has added to the market's jitters. With inflation on the rise for four straight months, Jerome Powell's recent testimony to the Senate hinted at a more cautious policy approach, dampening hopes for rate cuts. The CME Group's FedWatch Tool now shows a mere 2.5% chance of a cut come March.

Bitcoin is at a crossroads, struggling to find its footing amidst the selloff. While there's a chance for Bitcoin to bounce back if it can leverage the stacked bids that filled during the dip, resistance looms large at $96,690. If Bitcoin can't hurdle this obstacle, it might just confirm the bears' picnic.

Today's market reactions have painted a clear picture: higher inflation might just be the new normal, and rate hikes could be on the menu sooner than expected. For Bitcoin, this could mean retesting waters around the $90,000 mark as traders brace for a volatile journey.