Easing Inflation Expected To Boost Bitcoin Price
Crypto market watchers largely anticipate no changes in the upcoming US Consumer Price Index (CPI), though a lower-than-expected figure could potentially boost the price of Bitcoin, according to a crypto analyst.
“There is a real possibility of a lower print, which could ignite another rally attempt,” said Markus Thielen, head of research at 10x Research, in a Feb. 11 market report.
Thielen noted that most analysts are forecasting a 2.9% year-on-year (YoY) inflation rate in the report from the US Bureau of Statistics, scheduled for release on Feb. 12.
However, he pointed out that the US Truflation Inflation Index—a real-time gauge of inflation—has dropped from 3.0% to 2.1%, indicating that inflationary pressures “may be easing faster than expected.”
“If CPI surprises to the downside at 2.7% or 2.8%, Bitcoin could see a relief rally,” Thielen explained.
He also attributed Bitcoin’s January surge to market participants who had anticipated a “third consecutive month of rising CPI,” but were caught off guard when inflation remained steady at 2.9% from December.
This unexpected result “relieved the market,” triggering a $10,000 increase in Bitcoin’s price and pushing it above the crucial $100,000 mark—until tariffs imposed by US President Donald Trump on Canada, Mexico, and China “halted the momentum.”
A comparable $10,000 rally would propel Bitcoin to $105,491, just 3.5% below its all-time high of $109,000, briefly reached on Jan. 20 ahead of Trump’s inauguration.
At the time of writing, Bitcoin is priced at $95,490, reflecting a 2.65% decline over the past week, according to CoinMarketCap.
Benjamin Cowen, founder of Into The CryptoVerse, conducted a poll on X on Feb. 11, asking followers where they expect Bitcoin’s price to move after the CPI release.
Out of 12,397 participants, 51.7% had voted “up” at the time of publication.
Meanwhile, Michaël van de Poppe, founder of MN Capital, recently suggested that Bitcoin could reach new all-time highs within weeks, following gold’s recent trend of hitting record levels.
Sources:
https://cointelegraph.com/news/lower-cpi-print-inflation-bitcoin-price-rally-crypto-researcher