I wouldn't say that Bitcoin "dumps off a cliff". The Bitcoin price dropped by less than 10%, which is pretty normal percentage for a highly volatile asset.
I also wouldn't say that the price drop was caused by this inflation report. The high inflation was expected and I highly doubt that anyone is surprised by the levels of inflation in the US.
The Bitcoin price couldn't break above 25K so many traders decided to sell and get their short term profits. The selling pressure increased and the price dropped bellow 20K USD. That's normal thing in the market. There aren't any factors right now, that can potentially create a stable bull run and build a FOMO phase on the BTC market.