Bitcoin’s price rose nearly 4% to approximately $69,190 following the release of cooler-than-expected U.S. inflation data for January. The Consumer Price Index reading of 2.4% slightly beat forecasts, potentially influencing monetary policy. Crypto assets outperformed traditional markets, but analysts remain cautious, noting Bitcoin continues to consolidate within a key technical pattern.
Bitcoin’s price gained up to 4% to reach $69,190 as U.S. markets opened on Friday. The move followed data from the Bureau of Labor Statistics showing the January Consumer Price Index cooled to 2.4%, 0.1% lower than expected.
Core CPI matched estimates at 2.5%, reaching its lowest level since March 2021 according to trading resource The Kobeissi Letter. Reacting on X, the group stated “Odds of further interest rate cuts are back on the rise.” However, CME Group’s FedWatch Tool showed market odds of a March rate cut remaining below 10%.
Andre Dragosch, head of research at crypto asset manager Bitwise, noted on X that the CPI drop was not a surprise for those tracking alternative inflation data. U.S. stocks traded modestly lower on the day, failing to mirror Bitcoin’s positive momentum.
Trader Daan Crypto Trades observed on X that Bitcoin was still consolidating in a falling wedge pattern. “That’s the area to watch if this wants to see another leg up at some point,” he wrote regarding the $68,000 resistance level.
Analyst Michaël van de Poppe stated he believes Bitcoin is forming a higher low in its current price area. “It’s fragile, for sure, but it doesn’t mean that we’re not going to be seeing some momentum coming in from the markets,” he wrote on X. The $68,000-$69,000 zone contains key technical levels including the 2021 all-time high.
