NewsletterBitcoin (BTC) Reversal After U.S. CPI Data Set To Trigger $25K?
Bitcoin CPI Data News: A higher than expected inflation data for January initially resulted in traders reflecting disappointment. However, BTC is now forming a bear trap situation after a sudden reversal as the US Dollar Index (DXY) recovered from highs and the S&P 500 Index opened to an encouraging start. This is now leading to speculation that BTC reaching the $25,000 is not too far from reality in short term. However, the crypto market‘s close correlation with the stocks is a risky affair as it is directly subject to external factors.
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Meanwhile, the crypto market is still not devoid of its own adversities in the wake of the US SEC and the New York financial agency’s recent actions on Kraken and Binance USD (BUSD) respectively. Any further crackdown actions from the US agencies in coming days would wash away gains from the CPI data led momentum.
Trend Reversal To Lead To Shift In Gears For Bitcoin ?
As against the market expectation of 6.2%, the all items inflation index increased 6.4% before seasonal adjustment, as reported by the US Bureau of Labor Statistics. Despite not reaching the expectations, the January Index data marked the smallest 12-month increase since the period ending October 2021. Overall, the inflation data is still a positive outcome for the crypto community, as the BTC reversal could potentially imply more gains in the following days.
Last month, after the inflation numbers for December 2022 were released, the crypto market gave a mixed reaction with losses dashing away initial gains. However, the macro event turned out to be profitable for the cryptocurrencies as prices picked up massively in following days. Hence, the current reversal could well prove to be a transition in terms of bullish breakout for Bitcoin. As of writing, BTC price stands at $22,271, up 3% in the last 24 hours, according to CoinGape price tracker.
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