Crypto market participants are expecting no change in the upcoming US Consumer Price Index, but a lower print is possible and could trigger an uptick in Bitcoin’s price, says a crypto analyst.
“There is a real possibility of a lower print, which could ignite another rally attempt,” 10x Research head of research Markus Thielen said in a Feb. 11 market report.
Bitcoin rally may emerge if CPI “surprises to the downside”
Thielen said that most market participants expect a 2.9% year-on-year (YoY) inflation rate in the US Bureau of Statistics report set to be released on Feb. 12.
However, he said that the US Truflation Inflation Index — a real-time inflation tracker — has declined from 3.0% to 2.1%, which suggests that inflation pressures “may be easing faster than expected.”
“If CPI surprises to the downside at 2.7% or 2.8%, Bitcoin could see a relief rally,” he said.
He explained that this was why Bitcoin ( BTC ) surged in January — market participants had expected a “third consecutive month of rising CPI,” but the 2.9% inflation print, unchanged from December, caught them off guard.
He said this “relieved the market,” sparking a $10,000 surge in Bitcoin’s price and pushing it back above the key $100,000 level — until US President Donald Trump’s imposed tariffs on Canada, Mexico and China, which “halted the momentum.”
Another $10,000 Bitcoin rally will bring it closer to peak price
A similar $10,000 rally would send Bitcoin to $105,491, just 3.5% shy of its $109,000 all-time high, briefly tapped on Jan. 20 ahead of Trump’s inauguration.
