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The post US CPI Report Today Could Decide Whether Bitcoin Breaks $70K or Drops to $60K appeared first on Coinpedia Fintech News Bitcoin is preparing for high volatility as the US releases its January 2026 Consumer Price Index (CPI) data at 8:30 AM ET. With inflation expected to be around 2.5% year-over-year, traders across the crypto market are closely watching whether the print comes in hot, cool, or in line with forecasts. Bitcoin Price has increasingly reacted to macroeconomic data, especially inflation. The reason is simple. CPI shapes expectations around Federal Reserve interest rate decisions, and rate expectations influence the US dollar, bond yields, and overall liquidity. When liquidity tightens, Bitcoin often faces pressure. When liquidity improves, BTC tends to benefit. What Markets Expect From January Inflation Data Wall Street estimates suggest CPI will come in at 0.26% month-over-month and 2.5% year-over-year, slightly down from December’s 2.7% annual reading. Core CPI is expected at 0.34% month-over-month and 2.5% year-over-year. However, the unusually wide range in core inflation forecasts, between 0.25% and 0.42%, shows there is significant uncertainty. Seasonal adjustments and tariff-related pricing effects are adding complexity to this release. The previous hot CPI print in December led to a strong dollar, rising Treasury yields, and a 5% to 8% drop in Bitcoin. In contrast, a softer inflation reading in November supported a 2% to 3% rebound in BTC price. This pattern highlights how sensitive crypto markets are to inflation surprises. Why the U.S. Report Today Matters for Bitcoin Price Inflation data directly impacts expectations for Federal Reserve rate cuts. Higher inflation typically reduces the chances of near-term rate cuts. That strengthens the US dollar index (DXY) and pushes bond yields higher. Both factors tend to weigh on risk assets like Bitcoin. Lower inflation does the opposite. It increases the probability…

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Filed under: News - @ February 13, 2026 8:21 am