Short Term Crypto Rally To Extend From Current Range? Here’s Why

Anvesh Reddy
February 14, 2023 Updated May 16, 2025
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CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
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US CPI Data: The release of consumer price index (CPI) for January by the U.S. Bureau of Labor Statistics could likely have a significant ripple effect on the markets for the weeks to come. Amid hopes of the US economy further going the disinflationary way, the Federal Reserve committee in its recent meeting slowed down the rate hike pace, leading to a positive effect on the markets. Both the stocks and cryptocurrencies found optimism in the Fed’s hopes in the economy’s path towards disinflation in coming months. In this context, traders are predominantly anticipating a reduction in inflation for January, which would reinforce the overall market sentiment in the same direction.

Also Read: US CPI Set To Decline? Here’s What Trends Suggest

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Crypto Rally To Fade Away Soon?

If the CPI data comes out to be in the range of market expectation at 6.2% year-over-year, a widespread market rally is likely to happen. However, such a rally could likely sustain only for a short duration, as per JP Morgan analysts. In such a scenario, this could come out to be another ‘buy the news’ event for crypto traders. The U.S. Dollar Index (DXY), which has an inverse correlation with Bitcoin (BTC), is showing clear signs of chances of an upcoming rally. Futures linked to Dow Jones, S&P 500 and Nasdaq are trading in positive territory in anticipation of the inflation data.

Whether or not the crypto market gets a breakout from the current range largely depends on the macro sentiment. After having broken the correlation from stock market after the FTX collapse, Bitcoin (BTC) price is responding in proportion with the markets. Any support from the CPI data momentum could potentially help crypto price recover from the bearish sentiment thanks to the recent regulatory pressures around Binance BUSD. However, it remains to be seen how long would such a bullish momentum continue in the crypto market.

Also Read: Bitcoin Price Likely To Hit $25K After US CPI Data, Here’s Why

As of writing, Bitcoin price stands at $21,852, up 0.71% in the last 24 hours, according to CoinGape price tracker.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Anvesh reports major crypto updates around U.S. regulation and market moving trends. Published over 1400 articles so far on crypto and blockchain. A proud dropout of University of Massachusetts, Lowell. Can be reached at [email protected] or x.com/BitcoinReddy or linkedin.com/in/anveshreddybtc/
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.