Bitcoin Reclaims $70,000 Before CPI, But Banks Warn Inflation May Surprise Markets
Bitcoin rose above $70,000 ahead of the CPI report, but banks predict potentially higher inflation than expected, creating market uncertainty.Summary
Bitcoin (BTC) regained the $70,000 level before the release of the February Consumer Price Index (CPI) report. Wall Street banks are forecasting a sharper increase in monthly inflation than previously anticipated. Bitcoin has been consolidating between $63,000 and $75,000 after a significant drop from its peak. The CPI report is crucial, as a higher-than-expected reading—particularly above 0.3% MoM core CPI—could push BTC back down towards $65,000. Conversely, a lower reading could propel it towards $72,000. The correlation between BTC and the S&P 500 is currently 0.30, indicating a link to broader market trends. While the Federal Reserve is expected to hold rates steady in March, future rate cuts are dependent on the CPI data, with some banks revising their expectations for cuts later in the year. A potential stagflation scenario, with persistent inflation and slowing growth, could represent a downside risk for Bitcoin, with a floor around $70,000.
(Source：BeInCrypto)