President Trump: Bitcoin Takes a Tumble, But No Need to Panic!

Bitcoin's Roller Coaster Ride

Well folks it looks like Bitcoin took a bit of a nosedive today. But hey don't hit the panic button just yet! According to Coin Metrics Bitcoin is down by 0.8% at $49,658.57. It even dropped as low as $48,372.89 earlier. It's like riding a roller coaster isn't it? Up and down round and round!

Blame It on the CPI

So why the sudden drop you ask? Well it seems that the U.S. Bureau of Labor Statistics reported a higher than expected increase in the January consumer price index. Those economists over at Dow Jones didn't see that one coming! As a result yields went up including the benchmark 10 year U.S. Treasury yield. And you know what happens when yields rise? Risk assets like Bitcoin feel the pressure.

Bitcoin: The Store of Value

"Bitcoin is an aspirational store of value," says Jurrien Timmer from Fidelity Investments. That means its price is influenced by monetary policy. So when the CPI report came in hot it suggested that the Fed is not quite ready to make a pivot. Looks like we'll have higher rates for longer which can decrease the urgency to hold Bitcoin as a store of value. But hey don't worry Bitcoin still has value folks!

The Future of Crypto

Despite today's dip Nico Cordeiro from Strix Leviathan believes that the crypto rally will continue. He even warns investors to expect some weakness if inflation keeps heating up. You see Bitcoin isn't exactly the best inflation hedge. It's more like a gauge of liquidity within the financial system. But hey it's still crypto and it's here to stay!

Shoutout to the Altcoins

While Bitcoin is hogging all the spotlight let's not forget about the other players in the crypto game. Ether the star of yesterday's rally is holding steady. And Solana's SOL token is even making gains! It seems like there's room for everyone in this wacky world of digital currencies.

Keep Calm and HODL On

So what's the takeaway from all of this? Don't panic my friends! Bitcoin may have taken a hit but it's all part of the wild ride. Prices go up prices go down. That's just how it works in the crypto universe. So keep calm HODL on and let's see where this roller coaster takes us next!