Market Conditions Signal Rising Inflation and Its Impact on Crypto – BitRss

Currently, we are witnessing a peak of fear and uncertainty in the market preceding a potential surge. Inflation has begun to rise, coinciding with a period of uncertainty for the United States. The increase in January figures, before fully observing the short-term negative effects of Trump’s tariffs on inflation, raises concerns for 2025. What can we expect for cryptocurrencies?

Inflation on the Rise

Inflation experienced a half-point increase this month, marking the largest rise since August 2023. While a decline to 3.1% was expected for core CPI, it instead rose to 3.3%. All of this occurs in an environment where Trump’s additional tariffs are anticipated to significantly contribute to inflation by increasing various tax rates.

Even the recovery in inflation at the beginning of 2024 had not shown such a drastic monthly increase in the CPI.

Before the inflation figures were released, we noted th…