Bitcoin surged towards the $69,000 mark on Friday following a softer-than-expected January Consumer Price Index (CPI) report, which renewed interest in risk assets. The cryptocurrency rose by up to 4% intraday on Bitstamp, driven by the CPI data showing core inflation at 2.5% and overall inflation at 2.4%, both below expectations. Despite the positive momentum, the likelihood of a Federal Reserve rate cut remains low, with CME FedWatch indicating slim chances of easing at the March meeting.
Analysts noted that Bitcoin's price movement is testing significant technical levels, including the 2021 all-time high and the 200-week exponential moving average around the $68,000–$69,000 range. This area is seen as a potential anchor for higher lows. While the CPI data provided a tactical lift for Bitcoin, the broader market outlook hinges on future inflation trends and Fed policy decisions, which continue to influence risk appetite across asset classes.
Bitcoin Nears $69K as January CPI Eases, Fed Rate-Cut Odds Low
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