Bitcoin Selloff Deepens After US Inflation Report Sends Shockwaves Across Markets

Bitcoin faced significant selling pressure on Thursday as a higher-than-expected US inflation report rattled financial markets, sending both stocks and cryptocurrencies sharply lower. The data fueled expectations that the Federal Reserve may need to keep interest rates elevated for longer, denting investor appetite for risk assets.

---

US Inflation Surprises to the Upside

According to the latest Consumer Price Index (CPI) data, US inflation in July came in hotter than forecasts, signaling that price pressures remain persistent despite previous declines.

Headline CPI rose above market expectations.

Core inflation, excluding food and energy, also showed stubborn strength.

These figures raised concerns that the Fed might delay rate cuts — or even consider further hikes — to curb inflationary momentum.

---

Bitcoin and Crypto Market Reaction

The cryptocurrency market reacted swiftly:

Bitcoin (BTC) dropped below a key technical level, erasing recent gains.

Ethereum (ETH) and other major altcoins also posted steep losses.

Total crypto market capitalization fell as traders moved to risk-off positions.

Market analysts noted that institutional investors appeared to trim Bitcoin exposure, anticipating a prolonged period of tight monetary policy.

---

Stocks Join the Selloff

The US equity market also felt the heat, with major indexes like the S&P 500 and Nasdaq slipping into the red. Growth and tech stocks — often sensitive to interest rate expectations — led the declines.

This synchronized drop across asset classes highlighted the interconnectedness of global markets in the current macroeconomic environment.

---

Looking Ahead

Investors will closely watch upcoming Federal Reserve speeches and economic data releases for clues on the future path of interest rates. For Bitcoin, the $60,000-$62,000 range is being monitored as a critical support zone, with a breakdown potentially triggering deeper losses.

---

Conclusion

The latest US inflation report has shaken investor confidence, reminding markets that macroeconomic forces still play a decisive role in crypto price action. Until inflation shows clearer signs of cooling, volatility in both stocks and cryptocurrencies is likely to persist.