Bitcoin surged past $69,000 following the release of U.S. Consumer Price Index data for January, which showed inflation at 2.4%, slightly below expectations. The data boosted investor sentiment, leading to speculation about Federal Reserve policy, though rate-cut probabilities remain low. Bitcoin is currently consolidating within a falling wedge pattern, with traders closely watching the $68,000 to $69,000 zone for its next directional move.
Bitcoin experienced a significant price surge, surpassing $69,000, after U.S. CPI data for January was published. The reported inflation figure of 2.4% came in slightly lower than anticipated, providing a boost to market sentiment.
Core inflation matched forecasts at 2.5%, while the overall figure was 0.1% below expectations. This development led to speculation that the Federal Reserve might adjust its monetary policy stance.
The Kobeissi Letter stated that CPI inflation has fallen to multi-year lows, with core CPI at its lowest point since March 2021. However, market-implied probabilities for a Fed rate cut in March remain below 10%, according to data from CME Group’s FedWatch Tool.
Andre Dragosch, head of research for Europe at Bitwise, noted the CPI drop should not be surprising when considering alternative inflation metrics. On the day, Bitcoin’s price increased by 4% to approximately $69,190 on the Bitstamp exchange.
Analyst Michal van de Poppe mentioned that Bitcoin is in a critical area and a higher low could be expected. Trader Daan Crypto Trades remarked that Bitcoin is coiling within a falling wedge pattern, with its breakout attempt stalling near the $68,000 level. Traders are now monitoring the $68,000 to $69,000 price zone for Bitcoin’s next major move.
