Cryptocurrency market reacts to inflation data with Bitcoin's drop below $50,000

Bitcoin and other cryptocurrencies experienced a significant drop in value as a result of a hot Consumer Price Index (CPI) reading, with Bitcoin falling by 3% to $48,535.17. 

Concerns among investors

The unexpected rise in the CPI reported by the U.S. Bureau of Labor Statistics triggered a broader market sell-off, causing concern among investors regarding the Federal Reserve's potential actions in response to higher-than-expected inflation. As a consequence, both risk assets and cryptocurrency values were impacted.