Analysis: Bitcoin Rises Short-Term After CPI Data Release, Market Momentum May Gradually Recover

Odaily News According to reports, possibly boosted by the lower-than-expected U.S. January Consumer Price Index (CPI), Bitcoin (BTC) experienced a short-term increase of approximately 4%, with BTC/USD on Bitstamp briefly touching $68,855.

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 pointed 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 carries the weight of 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 appears vulnerable in the short term, market momentum may gradually recover.

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