 ▲ United States, Bitcoin (BTC) |
Bitcoin surged past the $69,000 level in a strong relief rally after the U.S. Consumer Price Index (CPI) came in lower than expected, signaling easing inflation.
According to cryptocurrency media outlet Cointelegraph on Feb. 13 (local time), Bitcoin (BTC) climbed to an intraday high of $69,190 after the U.S. Bureau of Labor Statistics (BLS) reported January CPI figures below market expectations. Core CPI met forecasts at 2.5%, while headline CPI fell 0.1 percentage point below expectations to 2.4%, marking its lowest level since March 2021. The Kobeissi Letter noted that CPI has reached its lowest point in years, suggesting the probability of an interest rate cut could rise again.
Despite moderating inflation data, expectations for an early rate cut by the Federal Reserve remain subdued. According to the Chicago Mercantile Exchange (CME) Group’s FedWatch tool, the probability of a 0.25% rate cut at the upcoming March Federal Open Market Committee (FOMC) meeting remains below 10%. Strong U.S. labor market data continues to support the prevailing view that the Federal Reserve will maintain a cautious stance on rate reductions.
Unlike Bitcoin’s sharp rise, traditional financial markets showed mixed reactions. Major indexes on the New York Stock Exchange edged lower despite news of easing inflation, failing to match Bitcoin’s momentum. Meanwhile, gold attempted to reclaim the $5,000 per ounce level, and the U.S. dollar index fell to 96.8 before seeking recovery, reflecting heightened volatility. Andre Dragosch, Head of Research at Bitwise, said the latest decline in prices had been anticipated to some extent through alternative inflation indicators.
From a technical perspective, analysts are closely watching whether Bitcoin can successfully break through the key resistance zone between $68,000 and $69,000. This range is considered a crucial psychological support and resistance level, as it aligns with the 2021 all-time high and the 200-week moving average. Analyst Michaël van de Poppe assessed that Bitcoin is currently forming higher lows and continues attempting to build new upward momentum amid market volatility.
Bitcoin remains highly sensitive to macroeconomic indicators and is attempting to break through short-term resistance levels, though overall market caution persists. While easing inflation is viewed as a positive development, it may take considerable time before it translates into actual rate cuts. Investors are maintaining cautious positions as they monitor upcoming labor data and comments from Federal Reserve officials.
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