The US Consumer Price Index (CPI) surged to 3.8% year-over-year, marking the highest inflation rate in three years and triggering a sell-off in cryptocurrency markets. Bitcoin fell below $81,000, Ethereum neared $2,300, and Solana dropped under $95. This inflation spike challenges the previous narrative of cooling inflation and potential rate cuts, with markets now pricing a 31% chance of a rate hike in 2025. Amid this market volatility, Bhutan sold 100 Bitcoin, continuing its unusual pattern of sovereign crypto liquidation. The sale is part of a broader $230 million divestment by the kingdom this year, sourced from its state-owned investment arm's Bitcoin mining operations. This consistent selling, coupled with inflation concerns, adds pressure to crypto markets, highlighting the complex outlook for investors.