Bitcoin hunts liquidity as US CPI inflation drops to lowest since 2021
Bitcoin experienced volatility after US CPI inflation unexpectedly dropped to its lowest level since March 2021, fueling rate cut bets.Summary
Bitcoin (BTC) saw increased volatility as markets reacted to the November US Consumer Price Index (CPI) data, which showed an unexpected drop, marking one of its largest monthly declines since 2023 and bringing the 12-month rise to 2.7%.
This lower-than-expected inflation figure, which put Core CPI at its lowest since March 2021, rallied risk assets like Bitcoin, causing the dollar and bond yields to fall. Traders are now pricing in more interest-rate cuts from the Federal Reserve, with the odds for a cut at the January 28 meeting rising.
Despite the positive inflation news, Bitcoin price action remained erratic, hitting liquidity walls above and below $89,000, leading some traders to suggest the current movement mimics a Q1 2025 fractal that could imply a future macro bottom for BTC/USD.
(Source：Cointelegraph)