CPI lower than expected or boosts Bitcoin, but the overall economic situation still dominates

Institutional analysis points out that for Bitcoin investors, tonight's US January CPI report may have a significant impact on market direction. If the CPI is lower than expected, especially the core data excluding food and energy, it could strengthen hopes of the Federal Reserve easing interest rates. This situation could weaken the dollar, making US Treasury yields more attractive, thereby potentially boosting demand for higher-risk assets such as Bitcoin. However, those who are eager for a substantial rise in cryptocurrencies may need to lower their expectations. Although a cooling CPI might bring about a brief boost, the overall economic situation remains the dominant factor. CoinDesk believes that due to inflation expected to continue being in focus and with cautious stance maintained by Federal Reserve , Bitcoin price trends may be limited within narrower end of trading range between $90k-$110k USD especially if CPI report shows higher than anticipated data.