Bitcoin (BTC) experienced a volatile reaction to the latest inflation data released by the Federal Reserve (FED). Following positive momentum fueled by US-China trade war developments, BTC surged past $106,000 only to subsequently retreat and settle around $101,000. Despite a short-term dip, Bitcoin rallied back to $103,000 throughout the day before market attention turned to critical inflation data released today. 2 key CPI measures were announced: the annual Consumer Price Index (CPI) at 2.3% versus 2.4% expectation and a monthly decline of 0.2%, exceeding the expected 0.3%. The Core CPI, which excludes volatile food and energy prices, also showed 2.8% for the year-on-year measure and a monthly gain of 0.2%, slightly higher than the projected 0.3%. As per The Kobeissi Letter’s analysis, this represents the first time since March 2021 that core CPI inflation has fallen below 3.0%. Market analysts are closely watching how these figures will influence the FED’s interest rate decision and how it will impact Bitcoin and other assets.