Analysis: After the release of the CPI data, Bitcoin experienced a short-term rise, and market momentum may gradually recover
Boosted by the lower-than-expected U.S. Consumer Price Index (CPI) for January, Bitcoin (BTC) saw a short-term increase of about 4%, with BTC/USD reaching as high as $68,855 on Bitstamp. Official data shows that the core CPI for January was in line with expectations at 2.5%, while the overall CPI was 2.4%, below the market expectation of 2.5%.Trading analysts pointed out that this is the lowest level of core CPI in years, and market expectations for further rate cuts by the Federal Reserve have increased. However, CME FedWatch data shows that the probability of a 0.25% rate cut at the March meeting is still less than 10%. From a technical perspective, Bitcoin still faces pressure in the $68,000-$69,000 range, which carries the historical high from 2021 and the 200-week EMA. Analysts believe that BTC is likely to form a higher low in this area; although it is weak in the short term, market momentum may gradually recover. In other markets, gold attempts to return to $5,000 per ounce, the U.S. Dollar Index (DXY) has slightly rebounded, while U.S. stocks closed slightly lower.