Bitcoin (BTC) Price Rally to $50,000 Halts As Investors Await US CPI Data

Bitcoin price continues to show strong resilience in the $48,000 to $50,000 range while institutional interest in ETFs remain high.
By Bhushan Akolkar
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Highlights

  • Bitcoin Investors await CPI data for January and Fed commentary before further move.
  • Bitcoin whale accumulated 140,000 Bitcoins in the past three weeks.
  • BTC support levels have strong resilience with analysts predicting rally to $57,000 before halving.

After a strong push to $48,500 over the last weekend, the Bitcoin price has registered a modest retrace of around $48,000. The recent pause in the rally to $50,000 comes as investors are keenly watching the developments to the CPI data release, ahead this month.

US Economic Data and FOMC Speeches Awaited

As the week unfolds, investors eagerly anticipate the release of key economic indicators from the United States, including January Consumer Price Index (CPI) and Producer Price Index (PPI) data. Additionally, several members of the Federal Open Market Committee (FOMC) are scheduled to deliver speeches, offering insights into the central bank’s monetary policy outlook.

Market sentiment remains focused on the likelihood of the FOMC maintaining interest rates unchanged during its upcoming meeting on March 20. Currently, the Chicago Mercantile Exchange (CME) assigns an 82.5% probability to this outcome, indicating expectations for a stable interest rate environment in the near term.

Meanwhile, prominent crypto analyst Michael van de Poppe stated that Bitcoin is showing strong resilience in the $48,000 to $50,000 range. Van de Poppe views Bitcoin’s ability to withstand these challenges as a positive indicator, suggesting growing strength in the market, potentially fueled by increased institutional interest. He speculates that Bitcoin may target higher price levels, projecting a range of $53,000 to $57,000 before the upcoming halving event.

Bitcoin ETF inflows, on the other hand, continue to remain strong. All of the nine spot Bitcoin ETF funds have attracted over $9 billion in inflows so far, since launch on January 11. However, BlackRock and Fidelity, have a lion’s share of more than 66% in this. Caroline Bowler, CEO of crypto platform BTC Markets Pty, noted on Bloomberg Television that there are signs pointing to a growing influx of institutional funds into the asset class

Bitcoin Whale Accumulation on The Rise

Popular crypto analyst Ali Martinez noted that Bitcoin whales have been on a buying spree and have accumulated 140,000 Bitcoins just over the last three weeks, amounting to more than $6.16 billion.

Courtesy: Ali Martinez

Despite persistent skepticism surrounding Bitcoin, it’s crucial to acknowledge the resilience of support levels, which may surpass resistance, said Martinez. Although a temporary price correction is plausible, it’s imperative to realize that the next notable resistance threshold for BTC is substantially higher, approximately at $57,000.

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Bhushan Akolkar
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
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