Bitcoin Price Could Hit $25K after US CPI Data. Here’s why
As Bitcoin prices fell below $21.5K, investors and whales increased their buying pressure. CoinGape reported Monday that there was an increase in interest from whales in Bitcoin. Bitcoin prices have risen by almost 2% in 24 hours, from $21,460 at the low, during the previous 24 hours.
While traders wait for the U.S. Consumer Price Index (CPI) data for January from the U.S. Bureau of Labor Statistics, major macroeconomic factors are cooling before the CPI release by that agency. After rising significantly, U.S. Treasury yields, crude oil prices and the U.S. Dollar Index have all started to fall.
After dipping by approximately 2 basis points, the 10-year Treasury yield traded at 3.369%. The yield on the 2-year Treasury was also lower at 4.509%, down about 2 basis points.
Oil prices fell on Tuesday as a result of the U.S. government’s plans to release more crude oil from its Strategic Petroleum Reserve.
The weak dollar has helped Bitcoin price to recover slightly ahead of the CPI data release. As major macroeconomic factors began to fall, a recovery was seen in the crypto market. After rising above 103.50 over the past week, the U.S. Dollar Index (DXY), fell 0.32% today to 102.96.
The U.S. inflation rate is expected to be 6.2% in January. This is the lowest level since October last year. Inflation fell by 7.1% to 6.5% in December. JPMorgan’s trading desk predicted that the market would rise 2.5-3% if it falls below 6.3%.
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Bitcoin prices rose by more than 40% in January. Market recovery is expected to continue in the face of cooling inflation and good job data, traders believe.
BTC price increases will bring about a wider market recovery in the face of crypto crackdown plans by U.S. regulators. After a drop in U.S. CPI data, a crypto analyst predicts a rise to $25K. BTC is currently trading at $21,822, while Ethereum is currently trading at $1,508, an increase of 2% over the last 24 hours.
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