Inflation Data Release Could Impact Bitcoin Prices and Demand
The U.S. inflation report set for release today may impact Bitcoin's price movement, which has been stagnant this week. Historical trends show significant price changes in January data.
- Higher-than-expected inflation could indicate a need for monetary policy adjustments, per Dallas Fed President Lorie Logan.
- Trump administration tariffs may add 0.8% to core PCE inflation, although past tariff impacts were minimal.
- A soft inflation report could benefit risk assets, including Bitcoin, by raising interest-rate cut expectations and weakening the U.S. dollar.
- Demand for Bitcoin remains strong; Gumi plans to acquire $6.6 million in BTC, while KULR increased its holdings to 610.3 BTC.
- Goldman Sachs has expanded its exposure to spot Bitcoin and Ether ETFs significantly.
- Bitcoin’s Coinbase premium is currently negative, indicating cautious sentiment among U.S. traders ahead of the inflation report.
- Crypto market growth showed signs of slowing with a 24% drop in total trading volumes last month.
Upcoming Events
- Feb. 12: U.S. CPI report released.
- Feb. 13: Producer Price Index (PPI) report due.
- Feb. 14: Qtum hard fork network upgrade.
- Feb. 21: TON becomes exclusive blockchain for Telegram's Mini App ecosystem.
Market Overview
- BTC down 0.4% at $96,029.62.
- ETH down 0.17% at $2,619.27.
- CoinDesk 20 index up 0.66% to 3,178.54.
Bitcoin dominance stands at 61.32%. The current funding rate on Binance is 0.01%.
In related news, the Central African Republic's CAR token has dropped 95% since its peak, now valued at around $40 million.
Market sentiment is cautious as open interest in altcoins declines sharply following Fed remarks hinting at delayed quantitative easing.