Markus Thielen, head of research at 10x Research, sees a strong chance of a Bitcoin (BTC) rally if upcoming US Consumer Price Index (CPI) data shows lower-than-expected inflation. While most market participants predict a 2.9% year-on-year (YoY) inflation rate in the Feb. 12 report, the US Truflation Inflation Index has dropped from 3.0% to 2.1%, suggesting inflation may be easing faster than anticipated.
“If CPI surprises to the downside at 2.7% or 2.8%, Bitcoin could see a relief rally,†Thielen stated. He pointed out that Bitcoin surged $10,000 in January after the CPI remained unchanged at 2.9%, defying expectations of rising inflation and pushing BTC above $100,000. However, the momentum stalled after US President Donald Trump imposed tariffs on Canada, Mexico, and China.
If a similar $10,000 rally occurs, Bitcoin could reach $105,491, just 3.5% below its $109,000 all-time high, briefly touched on Jan. 20 before Trump’s inauguration.
At the time of writing, Bitcoin is trading at $95,490, down 2.65% over the past seven days, according to CoinMarketCap. A poll by Into The CryptoVerse founder Benjamin Cowen showed 51.7% of 12,397 voters expecting Bitcoin to rise post-CPI release. Similarly, MN Capital founder Michaël van de Poppe predicts Bitcoin could hit new all-time highs in the coming weeks, following gold’s strong performance.
Source: Cointelegraph
