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The post Bitcoin’s Recovery Toward $100K Stalls After Hot CPI Report: Will BTC Price Dip Below $90K This Week? appeared first on Coinpedia Fintech News Over the past few days, the price of Bitcoin has been falling because it hasn’t attracted enough buyers around the $98,000 mark. As a result, sellers have been consolidating the price around $95,000. However, the recently released hot Consumer Price Index (CPI) report could change things, as many analysts think that the higher-than-expected inflation might plunge Bitcoin’s price toward $90K this week. Higher-Than-Expected CPI Report Triggers Long Liquidations Bitcoin price was surging toward $96K ahead of the CPI report as the market expected a softer inflation data for January. However, the consumer-price index increased by 3% compared to last year, picking up speed from December’s 2.9% rate and exceeding economists’ predictions. Also read: U.S. CPI Data Released: What’s the Impact on Crypto Market? January’s CPI typically shows significant price changes that businesses implement at the start of the year. Therefore, today’s report is a crucial indicator of how well the Federal Reserve is doing in its efforts to control inflation. The index went up by 0.5% from last month, which is a bit faster than the 0.4% increase in December and higher than the 0.3% increase economists had predicted. Following the recent CPI report, Bitcoin’s price has taken a sharp downturn. Within just a few minutes, it fell from a high of $96,000 to about $94,000. According to Coinglass, there were nearly $25 million in total Bitcoin liquidations, with buyers quickly closing out $22 million in long positions. If the CPI is higher than expected, it means inflation isn’t decreasing as hoped. This often causes the Federal Reserve to keep interest rates high or even raise them to manage inflation. High interest rates usually make the dollar stronger and Treasury bonds more appealing because they offer higher returns. This can lead investors to prefer these safer investments over more volatile ones like cryptocurrencies. As a result, demand for cryptocurrencies like Bitcoin may drop, leading to lower prices. Analysts are now predicting that this surge in inflation might slow down the recent recovery in the crypto market that started after the crash on February 3rd. It’s expected that Bitcoin’s price could drop to test the $90,000 level this weekend, which could plunge the likelihood of it reaching $100,000 soon.
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Is Ethereum ‘Most Hated Rally’ About To Begin? Analyst Finds Bitcoin Cycle Similarities
After a relatively subdued price performance in 2024, Ethereum (ETH) could be on the verge of a significant breakout. A recent analysis by a well-known crypto analyst suggests that the second-largest digital asset may soon enter what they call its “most hated rally.” Is It Finally Ethereum’s Time To Shine? Since reaching its all-time high (ATH) of $4,878 in November 2021, Ethereum has struggled to regain momentum, while other cryptocurrencies such as Solana (SOL), SUI, and XRP have delivered substantial returns to investors. Related Reading: Ethereum Positioned For A ‘Major Move Upward’ In 2025, Analyst Forecasts Currently, ETH is trading at $2,649 – only 5.5% higher than its price exactly one year ago. In stark contrast, XRP has surged an astonishing 365% during the same period. Even Bitcoin (BTC), despite its much larger market cap, has recorded a 100% gain in the past year. As a result, investor confidence in ETH appears to be dwindling. Recent on-chain analysis indicates that ETH ‘whales’ – wallets with significant ETH holdings – have been offloading, even at a loss. However, this trend could change dramatically. According to crypto analyst Titan of Crypto, Ethereum’s “most hated rally” could be just around the corner. The analyst draws parallels between Ethereum’s current price action and Bitcoin’s behaviour during its third market cycle between 2018 and 2020. The weekly chart below illustrates the striking similarities between the two assets. According to the analysis, Ethereum is currently in what is known as the “manipulation phase.” If history repeats itself, ETH is likely to enter the “run-up phase” once it decisively breaks through the “re-accumulation phase.” Notably, the chart also highlights that ETH has faced rejection at a crucial resistance level around $4,000 exactly three times – mirroring Bitcoin’s behaviour during its third market cycle before eventually breaking out. Similarly, another crypto analyst, Ted, has compared Ethereum’s price chart to that of XRP. He notes that XRP remained in a consolidation phase for nearly three years, experiencing little to no price movement, only to surge by 250% within just five weeks. Bullish Signs For Ethereum Despite hedge funds holding a large short position on ETH due to its recent subpar price performance, analysts are optimistic that 2025 will bring joy to the ETH bulls. Related Reading: Ethereum Holds Multi-Year Bullish Pattern – Expert Suggests The Next Move Will Be ‘The Real Deal’ For instance, recent analysis by crypto analyst Kiu_Coin suggests that ETH is on the cusp of an explosive price rally that may send it to $17,000. Another report published in January 2025 projects ETH price to climb to $8,000, outperforming BTC. Another sign of growing confidence in Ethereum is the increasing capital inflow into Ethereum exchange-traded funds (ETFs), outpacing Bitcoin ETFs in recent weeks. This trend indicates renewed optimism and a possible capital rotation into ETH. At press time, ETH trades at $2,649, down 1.1% in the past 24 hours. Featured image from Unsplash, charts from X and Tradingview.com coinpedia
Canada’s PM Trudeau Rejects Speculation of Becoming the 51st State, Deems it Infeasible
CANADA’S PM TRUDEAU: DISCUSSIONS ON CANADA BECOMING 51ST STATE ARE NONSTARTER, SAYS IT’S IMPOSSIBLE. ————— NFA. coinpedia
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Powell’s Statements Shake Crypto Market Sentiment
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