Key Points
- Market analysts are waiting for the US CPI data, which could influence the price of Bitcoin and altcoins.
- Bitcoin and altcoins may recover if the macro indicators are clear.
Bitcoin and altcoins are currently under pressure, but the upcoming US CPI data could potentially drive the market upwards. Market analysts are keeping a close watch on this data, which is due to be released on Wednesday.
Today, the US Labor Department will release the Consumer Price Index (CPI) report for January. The expectation is a 0.3% month-on-month increase in the cost of living, slightly lower than December’s 0.4% increase. The year-on-year inflation rate is predicted to remain steady at 2.9%, the same as December’s reading.
US Inflation and Cryptocurrency
According to previous forecasts, core inflation has risen 0.3%, up from 0.2% on a monthly basis. However, Jerome Powell, the Fed Chair, stated that there would be no changes in policy, and interest rates will remain high.
BlackRock, the world’s largest asset manager, said that persistent inflation in the services sector will likely prevent the Federal Reserve from cutting interest rates. They stated that even though December’s CPI report showed signs of inflation pressures easing, wage growth remains above the level that would allow inflation to recede back to the Federal Reserve’s 2% target.
Potential Recovery of Bitcoin and Altcoins
Some market analysts are hopeful that the price of Bitcoin (BTC) and altcoins will begin to recover once the macro indicators are clear. Crypto analyst Daan Crypto Trades observed that Bitcoin is consolidating strongly above its bull market support band. He also stated that there is no evidence of Bitcoin reaching a market top at this stage.
Miles Deutscher, a crypto analyst, reported that Bitcoin whales continue to accumulate more BTC, indicating growing interest and activity among large holders in the Bitcoin market.
Deutscher described the current state of the altcoin market as “in a weird place,” noting that it is neither an altcoin season nor strictly a Bitcoin-dominated phase. He added that he would consider aggressively longing altcoins if the market shifts into the “Bitcoin Season” zone, signaling clearer conditions for altcoin opportunities.
