Coinspeaker
US CPI, Easing Inflation to Push Bitcoin and Altcoins Higher?
As Bitcoin
BTC
$95 387
24h volatility:
1.7%
Market cap:
$1.89 T
Vol. 24h:
$39.01 B
and altcoins continue to be under pressure, market analysts are closely awaiting the US CPI data on Wednesday, wherein a lower-than-expected print and easing inflation could drive the market upwards.
Later today, February 12, the US Labor Department will release the Consumer Price Index (CPI) report for the month of January. Analysts are expecting a 0.3% month-on-month increase in the cost of living, slightly lower than the 0.4% in December. The year-on-year inflation rate is anticipated to remain steady at 2.9%, matching December’s reading.
As per the earlier forecasts, the core inflation has jumped 0.3%, from 0.2% on a month-on-month basis, while printing an annualized reading of 3.1%, from December’s 3.2%. However, Fed Chair Jerome Powell has clearly stated that there would be no change in the policy stance and will continue to keep interest rates higher.
Furthermore, the world’s largest asset manager BlackRock stated that persistent inflation in the services sector will likely prevent the Federal Reserve from cutting interest rates. The asset manager noted:
“We get US CPI for January this week. Even as December’s CPI report showed signs of inflation pressures easing, wage growth remains above the level that would allow inflation to recede back to the Federal Reserve’s 2% target, in our view. We see persistent services inflation forcing the Fed to keep rates higher for longer.”
Bitcoin and Altcoins to Recover with US CPI Data?
Some market analysts continue to remain hopeful that both Bitcoin (BTC) price and altcoins will begin their recovery once the macro indicators are clear. Crypto analyst Daan Crypto Trades observed that Bitcoin is consolidating strongly above its bull market support band.
He noted that this, along with other key “top indicators”, suggests there is no evidence of Bitcoin reaching a market top at this stage. “So far, I don’t see a reason why a top should be in for Bitcoin,” the analyst stated.
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Source: Daan Crypto Trades
Crypto analyst Miles Deutscher reported that Bitcoin whales continue to accumulate more BTC, with recent daily inflows showing a significant surge. This trend highlights growing interest and activity among large holders in the Bitcoin market.
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Source: Miles Deutscher
Crypto analyst Miles Deutscher described the current state of the altcoin market as “in a weird place,” noting that it is neither an altcoin season nor strictly a Bitcoin-dominated phase. Deutscher added that he would consider aggressively longing altcoins if the market shifts into the “Bitcoin Season” zone, signaling clearer conditions for altcoin opportunities.
US CPI, Easing Inflation to Push Bitcoin and Altcoins Higher?
