The latest report in the United States to increase CPI revealed a monthly increase of 0.5 % of the expected, which prompted annual inflation to 3.0 %, exceeding expectations by 2.9 %. The basic consumer price index, with the exception of food and energy, increased by 0.4 % per month, reaching 3.3 % annually, enhancing fears that inflation is still fixed.
Bitcoin’s reaction was with sharp fluctuations, as it decreased briefly to 94,000 dollars before recovering to 98,000 dollars and the restoration of about 96,000 dollars. Data has fueled speculation about the next step for the federal reserve, as the price reduction expectations are likely to be delayed until 2025.
Retailing panic, whales accumulate?
Santiment Santiment in Blockchain indicated that discussions about the consumer price index rose to the highest level in 15 months via platforms like X, Reddit and Telegram, indicating a widespread trading anxiety.
Historically, this fear reactions tend to create opportunities for institutional investors and whales to collect assets at reduced prices.
Santiment data also indicated a decrease in Bitcoin holders, which is usually interpreted as an upper indicator when young investors are concerned while buying major players strategically. This scenario is in line with the phenomenon of known “rumors” and the purchase of news “, as it is early. Opinioners work before the main economic ads and morale fluctuations in the market quickly.
Federal Reserve Policy and Bitcoin Future
As inflation exceeded in January, speculation over the upcoming moves of the Federal Reserve intensified. The previous decision of the Central Bank was based on stopping the price cuts in November 2024 to inflation trends that reduce, but the latest consumer price index report holds these expectations. The current market pricing now indicates only one possible price reduction in 2025, compared to the three expected discounts in the last quarter.
The US Treasury’s return for 10 years has jumped 10 basis points to 4.63 %, which reflects the investor concern that the rate of playing in the range may become the new standard. The head of the Federal Reserve, Jerome Powell, who testifies to Congress, stressed that price discounts will remain suspended unless inflation is largely cooled or slowed economic growth. This position created uncertainty of risk origins like Bitcoin, which is historically thrived in low -rate environments.
Moving forward, Bitcoin’s ability to keep her recovery depends on several main factors:
- Total developments in the economy: If inflation cools and reduces the rates of federal reserve signals at a later time in 2025, Bitcoin may regain bullish momentum.
- Institutional Investment: ETF flows can support continuous and budget allocations for companies stability.
- Organizational clarity: If Bitcoin’s adoption at the state level is accelerating, a driver may provide an additional request.
The prolonged delay in price cuts may increase the pressure on the price of Bitcoin, as the founding investors re -balance the conservatives towards the assets that are generated by the return such as bonds and profits. However, the instability of the macroeconomic economy and fears about reducing the value of the dollar are still increasing in a long -term institutional interest in Bitcoin as a hedge against cash.
