CPI lower than expected may boost Bitcoin, but the overall economic situation is still dominant
institutional analysis pointed out that for Bitcoin investors, tonight's US January CPI report may have a major impact on market direction. If CPI is lower than expected, especially the core data excluding food and energy, it may enhance the hope of the Fed easing interest rates. This situation may weaken the US dollar, make US Treasury yields more attractive, and potentially boost demand for higher-risk assets such as Bitcoin. However, those hoping for a significant rise in cryptocurrency may need to lower their expectations. Although a cooling CPI may bring a temporary boost, the overall economic situation remains the dominant factor. CoinDesk believes that as inflation is expected to remain a focus, the Fed will maintain a cautious attitude, and the price trend of Bitcoin may be limited to the narrow range of $90,000 to $110,000, especially if the CPI report shows data higher than expected.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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