CPI too hot, market sentiment cools down, Bitcoin falls below the 50,000 mark.

Last night, the U.S. announced that the Consumer Price Index (CPI) for January was 3.1%, higher than the economists' prediction of 2.9%. This news cooled down the market's optimism about future rate cuts, leading to an increase in bond yields. The three major U.S. stock indexes closed lower, with Bitcoin briefly falling below $49,000 and Ethereum also briefly dropping below $2,600.

Rate Cut Expectations Cool, U.S. Treasury Yields Surge

Last night, the U.S. released the CPI for January, which slowed from 3.4% the previous month to 3.1%, still higher than the economists' forecast of 2.9%.

According to CME's FedWatch, the market no longer expects a rate cut in March, with the probability of a rate cut in May dropping to 62.1% and to 55.8% in June, indicating that the market anticipates the Federal Reserve to only have room for one rate cut before June.

As a result, U.S. bond prices plunged significantly, with the 10-year Treasury yield soaring by 14 basis points to 4.315%.

BTC Falls Below 49K, ETH Breaks 2,600

Bitcoin briefly surpassed the $50,000 mark in the past two days, reaching a high of 50,368, hitting a near two-year high.

However, yesterday after the CPI announcement, Bitcoin also plummeted, falling below 49K to $48,300. As of press time, it has rebounded to $49,520.

Ethereum, on the other hand, showed relative weakness, with its recent high of 2,686 not surpassing January's 2,717 dollars. Last night, it briefly dropped below 2,600, and as of press time, it is trading at 2,629 dollars.