Analysis: Bitcoin Rises Briefly After CPI Data Release, Market Momentum May Gradually Recover

Odaily According to news, possibly boosted by the lower-than-expected US January Consumer Price Index (CPI), Bitcoin (BTC) saw a short-term increase of approximately 4%, with BTC/USD reaching $68,855 on Bitstamp at one point.

Official data shows that the January core CPI was 2.5%, in line with expectations, while the overall CPI was 2.4%, lower than the market expectation of 2.5%. Trading analysts point out that this is the lowest level for core CPI in years, leading to a renewed market expectation for further interest rate cuts by the Federal Reserve. However, CME FedWatch data indicates that the probability of a 0.25% rate cut at the March meeting remains below 10%.

From a technical perspective, Bitcoin still faces resistance in the $68,000-$69,000 range, an area that holds the 2021 all-time high and the 200-week EMA. Analysts believe that BTC has the potential to form a higher low here. Although it remains vulnerable in the short term, market momentum may gradually recover.

In other markets, gold attempted to return to $5,000 per ounce, the US Dollar Index (DXY) saw a slight rebound, while US stocks closed with minor losses. (Cointelegraph)