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Thursday, February 5, 2026

Bitcoin is immersed in an IPC shock of 2.7%: does the Altcoins also collapse?

The June IPC report triggers Crequewave crypto: Bitcoin falls, Altcoins Carrete, what follows for investors?

The June Consumer Price Index (ICC), expected with enthusiasm by Wall Street and Crypto Investors, has arrived equally, and is remodeling the narrative of Bitcoin and Altcoins that are directed to the second half of the year.

Published early Thursday, the report confirmed that inflation in the United States remains the sticky and disturbing markets that expected a softer impression that encourages the Federal Reserve to start reducing interest rates before the end of the year. On the other hand, the data suggests that inflation remains integrated in the key sectors of the economy, reviving fears of long -standing monetary conditions.

Crypto Markets felt the sting immediately. Bitcoin, who had been maintaining about the $ 118,000 brand before the CPI data, quickly dropped almost $ 2,000 in a matter of hours, trembling confidence and revital concerns about the vulnerability of the sector to macroeconomic data.

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Inflation is stubborn as the central ICC increases

The last report of the CPI revealed that the main inflation increased by 0.3% month by month in June, raising the annual inflation rate to 2.7%, the highest since February and analyst forecasts above analysts. However, it was the central ICC, which excludes volatile food and energy prices, which caused a particular concern. Central prices increased 0.4% in June, which carries the annual rate to 2.9%.

This unexpected increase in nucleus inflation suggests that underlying price pressures are not decreasing as fast as policy formulators expected, which complicates the perspective for monetary flexibility. Cipher X Research analysts pointed out that reintroduced tariffs under the Trump administration on key imports could contribute silently to these pressures, with sectors such as clothes and home items that see notable price increases.

Hokanews Proavides Global Crypto News, Analysis and Insights. Covering Blockchain, Defi, NFT and digital finance technology trends for investors and enthusiasts around the world.

“The Fed challenge is that central inflation seems sticky to levels inconsistent with its 2%target,” said Maria Klein, a senior economist of Cipher X. “This report can force the Fed to delay rates cuts, which directly affects liquidity in risk assets, including cryptocurrencies.”

Crypto Markets React: Bitcoin slides under the key support

Cryptographic markets reacted rapidly and harshly to inflation data. A few hours after the report, the price of Bitcoin fell from $ 118,000 to approximately $ 116,000, a decrease of almost 4%, with negotiation volumes that submerged in more than 47% according to Coinmarketcap. This sudden advantage reflected the growing anxiety for investors that the strictest financial conditions could expel the liquidity from the cryptography market, suffocating the impulse that Bitcoin had seen to join in recent months.

Market analyst Ali Martínez, who had predicted a launch of Bitcoin Rally Post-CPI based on historical patterns, recognized the failure of that thesis this time, pointing out the unexpected increase in central inflation as a change of play.

Technical analysts are now considering the level of $ 116,000 as a critical support. In the event that this level is decisively broken, a rapid decrease towards $ 114,000 or even $ 112,000 could develop, which could accelerate the outputs of the encryption market.

Altcoins suffer more pronounced losses

As is the case, the Altcoins were hit even more hard than Bitcoin immediately after the report. Ethereum fell almost 2%, while Solana, XRP and Cardano registered losses of more than 5%, highlighting the increased volatility in the Altcoin space during macroeconomic stress.

The buzz of the social networks that followed was a mixture of optimism and fear. Cryptoelitas, a popular cryptographic influencer in X, published that market fall could mark the beginning of a new Altcoin season, but many merchants remain skeptical.

Hokanews Proavides Global Crypto News, Analysis and Insights. Covering Blockchain, Defi, NFT and digital finance technology trends for investors and enthusiasts around the world.
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“Every time Bitcoin receives a blow, the Altcoins tend to bleed more,” said cryptographic merchant Benjamin Lee. “Without stability in Bitcoin, the probabilities of a sustained Rally of Altcoin are still scarce, especially in a macro uncertainty environment.”

Eyes in the Fed: the macro factor that dominates the cryptographic feeling

While technical graphics remain a crucial tool for cryptographic merchants, the narrative macro is demonstrating to be more influential. With the inflation data that trigger a rapid correction in Bitcoin and Altcoins, all eyes now resort to the next movement of the Federal Reserve.

If inflation continues with a greater trend until July and until August, the possibility of a Fed feeding rate before early 2026 becomes increasingly unlikely. This, in turn, could impulse save of half of the cryptography that many investors had been telling during the summer and autumn seasons.

“The Macro environment will dictate the next great movement in Crypto,” said John Temple, Investment Director of Blockchain Capital Management. “Rate cuts are optimistic for cryptography. If they are delayed, the feeling of risk in cryptography will remain moderate.”

Beyond graphics: geopolitical tensions and commercial policies are added to pressure

The encryption market not only faces monetary policy challenges, but also increases geopolitical tensions and changing commercial dynamics. The increase in tariffs, renewed conflicts in key regions and supply chain interruptions are contributing to a fragile global economic perspective, creating an environment where risk assets such as cryptography are particularly vulnerable to clashes.

This complexity in layers means that merchants should consider factors far beyond traditional graphics patterns. Macro data, central bank policies and geopolitical developments will continue to shape cryptography market movements in the predictable future.

What comes later for Crypto?

The critical question is now if Bitcoin can stabilize above its current support levels and if Altcoins can decoupling Bitcoin movements to organize a recovery.

The short -term technical indicators suggest that Bitcoin could test the $ 114,000 support if the bearish impulse continues, while a rebound could point to the $ 118,000 – $ 120,000 area if the macro fears facilitating or if the Fed indicates a double change of tone during its next political communication.

Hokanews Proavides Global Crypto News, Analysis and Insights. Covering Blockchain, Defi, NFT and digital finance technology trends for investors and enthusiasts around the world.

For Altcoins, recovery will depend largely on Bitcoin stabilization and the improvement of broader risk feelings. Without a clear optimistic catalyst, below it is still a possibility.

Conclusion: A crucial moment for encryption markets

The June CPI report has delivered a verification of reality to cryptographic merchants and investors, reminding them that macroeconomic foundations remain critical for the action of the cryptographic price. As inflation is more stubborn than expected, the Federal Reserve can be forced to keep higher rates for longer, a scenario that historically challenges risk assets.

For now, the cryptographic market enters a cautious surveillance phase. If this setback becomes a deeper correction or simply a temporary setback before the next higher section will depend on the next inflation data, the federal reserve policy and the broader global developments.

Investors are advised to remain informed, they are still cautious and closely monitor the macroeconomic indicators. The cryptographic trip is rarely soft, and the way ahead promises challenges and opportunities as the market navigates this period of greatest uncertainty.

Writer

@Ellena

Ellena is an experienced cryptographic writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides information about the latest trends and innovations in the currency space.

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