Bitcoin Loses 6% to Slide Below $96,000 as Worrying US Data Shakes Sentiment — TradingView News

Inflation might be picking up, according to the latest price growth in the services sector, which leaped above expectations.

• Bitcoin BTCUSD, the fire-breathing orange beast of volatility, showed what it’s capable of. On Tuesday, prices dipped 6% right after they had comfortably reclaimed $100,000. Early Wednesday, a token of the OG crypto was going for about $95,500 after fresh inflation data released yesterday dampened the mood ahead of Donald Trump’s inauguration on January 20.
• Price growth in the services sector marked a pronounced increase in December, hitting 64.4 against 57.5 expected. The long-term outlook remains positive — crypto bros are still immensely hyped about Trump’s anticipated deregulation in the crypto space (think crypto companies finally getting bank accounts). But the short-term view suddenly got a bit gloomy, especially with the Fed watching from above.
• The US central bank is due to release its minutes from officials’ final meeting of 2024 when they cut interest rates but then Fed boss Jay Powell spoiled the party as he trimmed the 2025 guidance. Looming inflation pressures might prompt policymakers to get even more defensive in their stance toward interest rates. And that’s something no investor wants to see as it’ll make money more expensive due to higher borrowing costs.