Technically btc should go up with news linked to inflations in fiat markets because logically Bitcoin's point becomes stronger with every bit of depriciation in dollar.
I think so too and I believe what happened to price around the time of the news is nothing but market correction. Come to think of it, Bitcoin has remained below $30k for few days now before the news. So, it's nothing much apart from the OP zooming in on the graph on the hourly TF and that made it seemingly alarming.
I think this was just a market reaction to the news immediately
No, I don't think it was. If anything, Bitcoin is taken as a safe haven for the troubled dollar. I think it was a mere coincidence that Bitcoin price dropped at that time. That's not even a severe drop compared to what we've seen in the past week. A check shows that Bitcoin did $26,700 a few days ago while it's still trading around $27,500 at the moment.