Bitcoin (CRYPTO: BTC) fell more than 2% on Tuesday as US stocks dipped following hotter-than-expected inflation data. BTC price traded to lows of $48,500 as it pared gains recorded when it raced to above $50,000 on Monday.

The benchmark cryptocurrency’s losses came as stocks reacted to inflation data that showed consumer prices rose 0.3% over January and 3.1% over the past year that month.

As investors digested the details released by the Bureau of Labor Statistics, the S&P 500 fell 1.3% to retreat from its historic highs above 5,000. The Dow Jones Industrial Average also dropped, losing more than 450 points, while the Nasdaq Composite slashed nearly 2%.

Gold also fell, sliding below $2k for the first time in 2024. Peter Schiff shared his outlook following the dip in the price of the precious metal.

Today's hotter than expected #CPI caused #gold to fall below $2K for the first time in 2024. But the news is actually bullish for gold, as it confirms that the #Fed wasn't able to raise interest rates high enough to stop #inflation from running out of control. The game is over.

— Peter Schiff (@PeterSchiff) February 13, 2024

More downside pressure? Analysts comment on BTC price 

While Bitcoin price has moved higher slightly after the initial reaction to the hot CPI data, analysts say the top crypto asset could see further dips if negativity seeps into the market.  

“On a 12-month basis, the US #CPI report was anticipated to come in at 2.9%. Instead, the result of 3.1% came in today, which has caused market cap bleeding in both #crypto and #equities. With #Bitcoin falling back below $49K today after breaching $50K for the first time in over 2 years yesterday, crowd sentiment is likely to become quite polarized with this mild retrace. If there are significant panic sells, #dipbuy justification becomes significantly more viable while sentiment turns negative,” analysts at market intelligence firm Santiment wrote on X.

📉 On a 12-month basis, the US #CPI report was anticipated to come in at 2.9%. Instead, the result of 3.1% came in today, which has caused market cap bleeding in both #crypto and #equities. With #Bitcoin falling back below $49K today after breaching $50K for the first

(Cont) 👇 pic.twitter.com/VmKvXWjuG6

— Santiment (@santimentfeed) February 13, 2024

Bitcoin traded at $48,720 on Tuesday around 11:30 ET, down 2.2% in the past 24 hours. Recent gains means BTC remains more than 12% up in the past week and a rebound could put it back on track for a retest of the $50k level. On the flipside, more losses would put pressure on bulls to hold key support levels at $46k.

This article was published on Invezz and republished with permission.