Bitcoin spikes 6% on softer US inflation but the CPI record still has holes after the shutdown

The January U.S. inflation data showed headline CPI at +2.4% year-over-year (softer than the +2.5% estimate) and core inflation at 2.5%, which Bitcoin absorbed positively, causing a 6% intraday spike toward $70,000. However, the official Consumer Price Index (CPI) record has significant gaps, as data for October and November 2025 is missing due to a government shutdown, forcing reliance on models and proxies. The market is keenly focused on the Federal Reserve's next steps, with internal dissent suggesting some officials favor rate cuts sooner. The path forward depends on future data, particularly the February CPI report on March 11, which will influence the March 17–18 Fed meeting. While the softer print supports a cooling inflation narrative, persistent costs like shelter keep the human experience of inflation lagging, and the market remains sensitive to interest rate expectations and the $307 billion stablecoin liquidity pool.

(Source：CryptoSlate)