The post BTC Struggles for Momentum Amid Macro Uncertainties and Upcoming CPI Report appeared on BitcoinEthereumNews.com.

Bitcoin’s recent price action reflects heightened uncertainty as macroeconomic factors and inflation concerns inhibit upward momentum. The market closely watches upcoming economic indicators, particularly the January CPI report, to gauge potential shifts in Federal Reserve policy. According to COINOTAG, Powell’s remarks have left traders wary, with experts noting, “The slow pace of rate cuts could extend Bitcoin’s price struggles.” Bitcoin’s price struggle continues as market uncertainty grows ahead of crucial economic data. Will the January CPI provide a breakthrough for BTC? Impact of Federal Reserve’s Stance on Bitcoin Prices Recent commentary from Federal Reserve Chairman Jerome Powell has influenced Bitcoin’s price trajectory significantly. Following a peak of $98K, Bitcoin’s value sank to $95K as Powell’s assertion of a cautious approach to rate cuts triggered a sell-off. Traders now perceive the Fed’s outlook as a limiting factor for Bitcoin’s potential recovery. Market Reaction to Inflation Data Expectations The upcoming January CPI report is poised to play a pivotal role in shaping market sentiment. As inflation data remains a key determinant of Fed policy, analysts are keenly focused on whether the reported inflation aligns with market predictions. A reported increase beyond the anticipated 0.3% monthly change may signal a prolonged period of high interest rates, further dampening investor enthusiasm for risk assets like Bitcoin. Source: CME FedWatch Tool Truck investments anticipate that if inflation eases, we might witness a bullish turn in Bitcoin prices. Conversely, continued inflation could solidify bearish sentiment, prolonging market indecision. Presently, traders have priced in a significant 95% likelihood of another rate pause in light of recent indicators, which could affect upcoming Federal Open Market Committee (FOMC) policy discussions. Source: CryptoQuant Market analysis shows the Coinbase Premium Index has stabilized after earlier gains, suggesting a cautious approach from U.S. investors toward Bitcoin. The index, which correlates with Bitcoin’s…

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Filed under: News - @ February 12, 2025 9:23 am