US inflation hit 3% year-over-year, with core inflation at 3.3%, sparking negative reactions in the crypto market. Bitcoin dropped below $95,000, and the overall crypto market cap fell by 5%. Investors are concerned about potential Federal Reserve policy changes, as the current inflation rate is the highest since June 2024.
Fed Chairman Jerome Powell reaffirmed his stance on not rushing to cut interest rates, despite President Trump's push for bigger cuts. Market participants expect short-term volatility as traders adjust positions amid the uncertainty.
Liquidations reportedly reached over $10 billion, with fears of a trade war impacting market conditions. However, analysts remain bullish on long-term prospects, projecting potential new all-time highs by year's end.