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Bitcoin (BTC) Reversal After U.S. CPI Data Set To Trigger $25K?

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Bitcoin CPI Data News: The January inflation data was higher than expected, which initially led to traders expressing disappointment. BTC is now in a bear trap after a sudden reversal, as the US Dollar Index(DXY) rebounded from highs and S&P 500 Index got off to a positive start. It is now possible that BTC could soon reach $25,000, according to some speculation. The close correlation of the crypto market with stocks is risky because it is directly affected by external factors.
Also read: Whales Move 533 million XRP as This Exchange Announces Listing

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The crypto market is still facing its own challenges in the wake the recent US SEC and New York financial agency actions on Kraken (BUSD), respectively. Any further crackdowns by the US agencies in the coming days would wipe out gains from the CPI data-led momentum.

According to the US Bureau of Labor Statistics, the all-items inflation index grew 6.4% before seasonal adjustment against 6.2% market expectations. Although the January Index data did not meet expectations, it was the smallest 12-month growth since October 2021. Overall, the inflation data is positive for the crypto community. The BTC reversal could possibly imply greater gains in the days ahead.

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The crypto market had mixed reactions to the December 2022 inflation numbers. Initial gains were wiped out by losses. The macro event proved to be profitable for cryptocurrencies, as prices soared in the days that followed. The current reversal could be a transition for Bitcoin’s bullish breakout. According to CoinGape’s price tracker, BTC is currently at $22,271, an increase of 3% over the previous 24 hours.
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Also read: MicroStrategy, Coinbase (COIN), Shares Turn Bullish. What’s Next?

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The content presented may contain the author’s personal opinion and is subject to market conditions. Before investing in cryptocurrency, do your market research. The publication or the author are not responsible for any financial loss.

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